India's Reliance Communications (RCom), which is currently merging its tower business with GTL Infrastructure, is reportedly closing in on a second merger – this time for its DTH/IPTV assets.
RCom is close to negotiating a deal to merge its DTH and IPTV business with Digicable Network, sources toldLiveMint.
One source said that RCom would own a majority stake in the converged company, adding that the arrangement would be an all-stock deal.
At the moment, the privately-held DigiCable is 49% owned by Ashmore Investment Management, and 51% by CEO Jagjit Singh Kohli and his associates.
Digicable boasts a subscriber base of 8.5 million, and operates in eight of India's 22 telecom circles.
Reliance's BIG TV DTH unit currently has 2.4 million customers and a 12% market share.
The Reliance stable of media companies also includes cinema multiplex operator Reliance MediaWorks and broadcasting company Reliance Broadcasting.
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