DEN Networks sells additional 25% stake in Delhi Dynamos
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Cable television distributor DEN Networks Ltd, backed by private equity giant Goldman Sachs, on Wednesday said that it has sold an additional 25% equity stake in Indian Super League (ISL) football club Delhi Dynamos to Wall Street Investments Ltd. Financial details of the transaction were not disclosed.
As per the stock exchange filing, Wall Street Investments has agreed to acquire the additional stake in DEN Sports & Entertainment Pvt. Ltd from DEN Networks. DEN Sports, in turn, owns DEN Soccer Pvt. Ltd that houses Delhi Dynamos.
The board of the company has also given the nod to rename DEN Sports to Delhi Sports & Entertainment Pvt. Ltd and DEN Soccer to Delhi Soccer Pvt. Ltd, the statement said. The proposal for a name change is subject to various regulatory approvals and other conditions.
With the acquisition, the holding of Wall Street has increased from 55% to 80% and the holding of DEN has decreased from 45% to 20%. Earlier this year, DEN Networks agreed to offload 55% of DEN Sports to Wall Street Investments for Rs43.32 crore.
In September, Goldman Sachs PE, which initially invested $110 million in 2011 in DEN Networks, raised its holding by acquiring an additional 6.7% stake in the firm through a preferential allotment of shares, taking it to 24.49%.
Wall Street Investments represents promoters of GMS, a US- and Dubai-based business group with interests in the shipping industry. It was founded by Anil Sharma, a non-resident Indian.
GMS claims to be the world’s largest cash buyer of ships for recycling, with offices in Hamburg, Dubai, Singapore, Shanghai and Tokyo. It also has representatives in all major recycling locations, including India.
The company has a division called GMS Capital, which specializes in corporate acquisitions, mergers, new buildings and second-hand purchases.
DEN Networks is into distribution of TV channels through analog as well as digital modes. It is present in 13 states across the country, including Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand and Bihar.
Delhi Dynamos is one of eight teams participating in the ISL, which was launched in October 2013 by IMG Worldwide, Reliance Industries Ltd and Star India Pvt. Ltd along the lines of the Indian Premier League cricket league.