Sahara India is close to acquiring a controlling stake in DigiCable, a cable service provider.
This will mark the entry of Sahara into the digital cable business.
This controlling interest is sought to be achieved by Sahara funding the promoters of DigiCable, Stellar Interactive Media, owned by Mr Jagjit Singh Kohli and Mr Yogesh Shah, sources in the know of the developments said.
Stellar Interactive is likely to use the Sahara funds to buy out private equity player Ashmore Investment’s 49 per cent stake in DigiCable. Stellar will do the deal stake through one of its subsidiaries, Broadband Pacenet.
Deal size
The sources declined to reveal the deal size. Market buzz is that Sahara has bought it at a lower valuation than what Ashmore Investment has put in.
The private equity firm has invested about $240 million in both these companies — Broadband Pacenet and DigiCable. Ashmore had 49 per cent stake each in Broadband Pacenet and DigiCable, which the parent Stellar now fully controls.
Stellar Interactive Media bought out Ashmore’s stake in Digicable through a cross-holding transaction. Stellar acquired Ashmore’s 49 per cent stake in Braodband Pacenet, which in turn bought out the equity firm’s 49 per cent stake in DigiCable.
Mr Jagjit Singh Kohli was not available for comment.
DigiCable has been on the block for some time after its previous buyout by Reliance Communications did not get the regulatory approvals.