DEN Networks to acquire stake in VBS Digital to grow in UP
DEN Networks has entered into an agreement with VBS Digital for acquiring 51 per cent stake at a consideration of Rs 2.64 crore payable in cash. This acquisition will strengthen DEN Network’s reach in the state of Uttar Pradesh.
VBS Distribution Network Private Limited is into cable distribution business in Uttar Pradesh. It has posted tremendous revenue growth of 400 per cent on a year on year basis in FY17. DEN Networks is engaged in distribution of television channels through analog and digital cable distribution network, and provision of broadband service. During H1FY18, DEN Networks has derived 93 per cent revenue from Cable distribution network and 7 per cent from Broadband. The company has continued its negative trend in its operating level and bottomline since FY15.
The company has been able to accelerate its subscription collections mainly in Phase 3 and 4 markets. Its cable subscription revenue has seen a jump of 24 per cent in Q2FY18 compared to Q2FY17. Under the Broadband business, company expects the offtakes to be visible from early FY19 as the next phase of roll out to expand wired internet services are in pipeline.
Today, the stock opened at Rs. 114.80, 5 per cent up from Friday’s closing price of Rs. 109.85.