Multi-system operator Den Networks Ltd has agreed to acquire a 51% stake in cable televison distributor VBS Digital Distribution Network Pvt. Ltd for Rs 2.64 crore ($416,600) in cash.
The deal will strenghten Den's cable TV network in Uttar Pradesh, the company said in a stock-exchange disclosure.
Incorporated in 2015, VBS Digital posted revenue of Rs 5.82 crore in the year through March 2017.
Den Networks provides cable TV distribution and broadband services in 13 states, including Delhi, Uttar Pradesh, Karnataka, Maharashtra, Kerala, West Bengal and Uttarakhand.
The company posted a net loss of Rs 186.6 crore for the fiscal year 2016-17 on consolidated net sales of Rs 1,157.34 crore. Its consolidated revenue from the cable business increased to Rs 1,075.54 crore from Rs 883.24 crore in 2015-16, according to its latest annual report.
Den Networks is backed by Goldman Sachs, which had invested $110 million in 2011 and purchased additional preference shares in September 2016.
As on 30 September 2017, Goldman Sachs held a stake of close to 24% in the company.
In June last year, Den Networks had sold its entire stake in TV merchandise channel Macro Commerce Pvt. Ltd to focus on its core business.