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Hathway to hive off broadband business to subsidiary

Cable services provider Hathway Cable and Datacom today said it would transfer its broadband-based Internet service business to its subsidiary Hathway Broadband.

As part of restructuring the business, company's board today gave its 'in-principal' approval to "demerge, transfer and vest" its entire broadband business to the subsidiary, Hathway said in a statement.

However, the same would be subject to mandatory approval from its shareholders, creditors and regulatory bodies, it added.

Commenting on the development, Hathway Cable and Datacom Ltd MD & CEO Jagadish Kumar said: "The restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business." 

"The separation is a step towards increasing the broadband business' customer focus and market competitiveness as well as in delivering a superior value proposition," he added.

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