ShivRaj
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a major restructuring exercise, Hathway Cable and Datacom has decided to spin off its cable TV business into a wholly owned subsidiary while retaining the broadband business in the parent company.
This is a change in direction from the company’s earlier plan to move out the broadband business to a wholly owned subsidiary. Hathway had announced a demerger scheme to put the broadband business in Hathway Broadband Pvt Ltd (HBPL).
Now the reverse is going to take place. The parent company will hold the broadband business, which is highly profitable. The cable TV business will be carved out and housed in a wholly owned subsidiary, Hathway Datacom Central Pvt Ltd.
In a way, this signals the confidence the company’s owners have in the broadband business. Also important is the value of the cable TV business, which will be retained within Hathway Cable and Datacom through the wholly owned subsidiary and can also attract separate investors.
Explaining the rationale, Hathway has said that broadband is the primary growth driver of the business; hence it is preferable to retain the potentially more profitable business in the parent entity. “Public Investors will benefit from direct stake in the parent entity housing the high growth potential business. Transfer of cable business to the wholly owned subsidiary would retain the value within Hathawy Cable and Datacom,” the company stated.
Hathway to spin off cable TV biz into wholly owned subsidiary; broadband biz to be in parent company | TelevisionPost.com
This is a change in direction from the company’s earlier plan to move out the broadband business to a wholly owned subsidiary. Hathway had announced a demerger scheme to put the broadband business in Hathway Broadband Pvt Ltd (HBPL).
Now the reverse is going to take place. The parent company will hold the broadband business, which is highly profitable. The cable TV business will be carved out and housed in a wholly owned subsidiary, Hathway Datacom Central Pvt Ltd.
In a way, this signals the confidence the company’s owners have in the broadband business. Also important is the value of the cable TV business, which will be retained within Hathway Cable and Datacom through the wholly owned subsidiary and can also attract separate investors.
Explaining the rationale, Hathway has said that broadband is the primary growth driver of the business; hence it is preferable to retain the potentially more profitable business in the parent entity. “Public Investors will benefit from direct stake in the parent entity housing the high growth potential business. Transfer of cable business to the wholly owned subsidiary would retain the value within Hathawy Cable and Datacom,” the company stated.
Hathway to spin off cable TV biz into wholly owned subsidiary; broadband biz to be in parent company | TelevisionPost.com
