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.