Goldman Sachs to invest $21.2 mn more in Den Networks

Cable television company Den Networks Ltd said on Tuesday it is raising Rs 142.43 crore ($21.26 million) from existing investor Goldman Sachs.

Den Networks will issue 15.8 million shares on a preferential basis to Goldman Sachs at Rs 90 apiece, it said in a stock-exchange filing.

The share allotment will increase the stake held by Goldman Sachs in the Indian company to 24.49% from 17.79%, Den Networks said. The US firm owns the stake through two affiliates, Broad Street Investments (Singapore) Pte Ltd and MBD Bridge Street 2013 Investments (Singapore) Pte Ltd.

Goldman Sachs had first put money in Den Networks in 2013 when it invested $110 million (Rs 600 crore then) in the single-largest private equity deal in India's cable and satellite sector.

At the time, Goldman had bought the shares at Rs 217.5 apiece, more than double the price in the latest transaction.

On Tuesday, shares of the Indian company were 4.3% higher at Rs 82.30 in afternoon trade. The 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 net loss of Rs 57 crore for the quarter through June 2016 on revenue of Rs 239 crore. Its gross debt was Rs 852 crore at the end of June.

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