(5 March 2008 11:25 pm)

MUMBAI: Hathway Cable & Datacom has acquired controlling interest in two mid-sized cable TV companies as part of its strategy to expand its footprint and roadblock the two new MSO (multi-system operator) entrants, Digital Entertainment Networks (DEN) and Digicable Network.

Hathway has bought 51 per cent stake in both Bhaskar Multinet Ltd, the cable TV arm of Dainik Bhaskar Group, and Gujarat Telelinks Pvt Ltd. The MSO has also acquired Marathwada Cable Network, a MSO which operates in Aurangabad.

Industry estimates, however, put the enterprise value of Gujarat Telelinks at around Rs 800 million and Bhaskar Multinet at Rs 600 million.

DEN, floated by Global Broadcast News (GBN) joint MD Sameer Manchanda and TV18 Group founder-promoter Raghav Bahl, was in hot pursuit to buy majority stake in Gujarat Telelinks, the largest MSO in Ahmedabad which also has presence in Baroda, Surat and Rajkot.

For Bhaskar Multinet, which has a presence in Bhopal, Indore and Jaipur, DEN and Digicable Network had shown keen interest to acquire controlling interest. UK-based private equity firm Ashmore Investment Management Ltd. has taken a 49 per cent stake in Digicable Network.

Hathway is pushing for digital cable.It has launched digital cable in Ahmedabad and Indore on the Gujarat Telelinks and Bhaskar Multinet networks.

"We are initially launching digital cable in Indore through fibre optic linked from Mumbai. But we will soon be setting up a digital headend in Bhopal which will service the neighbouring areas of Madhya Pradesh. For Gujarat, Ahmedabad will be the central point," says Jayaraman.