Providence Equity Partners LLC, has purchased Macquarie Bank’s 6.35% stake in multi-system operator Hathway Cable & Datacom, therefore taking its total holding in the broadband company to 17.2%.
The shares were picked by P5 Asia Holding Investments Limited of Mauritius, a group company of Providence Equity Partners LLC. According to the available data with stock exchanges, Macquarie Bank sold a total of 5,27,83,220 shares amounting to 6.35 percent stake of Hathway Cable & Datacom. The shares were sold at a rate less than $1 dollar per share.
Providence Equity Partners already owns 10.83% in Hathway Cable and has fueled its stake after the purchase. Whereas Macquarie, which owns 9.42% stake has sold two-thirds of it. Apart from Hathway, Providence has also invested in UFO Digital Cinema and Shop CJ Network.
The move comes just few days after the government declared major changes in easing foreign direct investment (FDI) norms in several key sectors consisting of media and broadcasting. As per the norms, government allows 100% FDI is some edia distribution platforms like cable networks from the existing 74%. Other country nationalities can buy as much as 49% without approval from the government while international investors can buy more if the authorities agree.
Till date, Hathway is the largest cable operator by revenues and market cap ahead of its nearest peer Den Networks apart from Siti Cable, among others. The company which has been offering broadband connection through its cable lines is soon to transfer its broadband business to its subsidiary Hathway Broadband.