Den Network to separate ISP arm Skynet Cable Network
With this demerger, Den Network focuses on the significant growth potential for high speed data and related services in India. Photo: Official Website
Den Networks - India's largest cable TV distribution channel on Monday, informed the company's plan to demerger it's wholly-owned subsidiary Skynet Cable Network.
It said in the statement,"The board of the company in its meeting held today have inter-alia considered the de-merger of broadband/internet service provider (ISP) business undertaking into Skynet."
With this demerger, Den Networks seeks to enable a focused attention on the ISP business. Also, it focuses on the significant growth potential for high speed data and related services in India.
Under this move, there will be no change in the shareholding pattern among Den Networks and Skynet pursuant of the scheme of arrangement.
For the deal, incase the company plans for cash consideration, it will be based on net value of the asset and liabilities of demerged undertakings.
In the financial year 2016, Den Network's ISP arm had a turnover of Rs 40.63 crore, almost 3.53% of the company's total turnover.