Goldman to raise holding in Den Networks
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New Delhi: Goldman Sachs will be raising its holding in cable television company Den Networks Ltd by acquiring an additional 6.7% stake in the company through a preferential allotment of shares.
In a filing with the stock exchanges, Den Networks said that it has received board approval to sell 15.8 million shares on a preferential basis to existing investor Goldman Sachs at Rs.90 apieceRs. for about Rs.142.43 crore in total. Following the share allotment, US-based Goldman Sachs’ holding in Den Networks will increase to 24.49% from 17.79% and the promoter group shareholding will also drop to 37%.
The company will now convene an extraordinary general meeting on 14 October to obtain shareholders’ approval for the sale.
Goldman Sachs owns the stake in Den Networks through two affiliates, Broad Street Investments (Singapore) Pte Ltd and MBD Bridge Street 2013 Investments (Singapore) Pte Ltd.
Initially, Goldman Sachs had invested $110 million (about Rs.600 crore) in Den Networks in 2013, which was said to be the single largest private equity deal in India’s cable and satellite sector.
Goldman bought the shares at that time at Rs.217.5 apiece.
On Tuesday, shares of Den Networks rose 3.19% on the BSE to close at Rs.80.85 apiece. The benchmark index Sensex slid 0.39%, or 111.30 points, to end the day at 28,523.20 points.
Den Networks’s shares have slid almost 40% over the past year as the company struggled with losses and high debt.
Earlier this month, Den Network reported a loss of Rs.57 crore for the quarter through June2016 on revenue of Rs.239 crore.Its gross debt was Rs.852 crore at the end of June.