Goldman invests $110m in Indian cable distributor
Goldman Sachs has invested INR6 billion ($110 million) in DEN Networks, an Indian cable distribution company. According to AVCJ Research, it is the fifth-largest PE investment completed in India so far this year.
According to a DEN statement, the capital will be used to support the company's growth plans. The size of the stake was not disclosed, but based on a preferential allotment pricing of INR217.5 per share, VCCircle estimates that Goldman will end up with a 16-17% holding.
Previous investors in DEN include IL&FS Investment Managers, Hong Kong-based India Capital and Softbank.
The company holds a nationwide internet service provider license and is currently conducting field trials in two cities, with services to be rolled out in the next few months. It also has a digital television service intended to challenge the growing direct-to-home TV segment.
DEN was founded in 2007 and its analog TV services reach an estimated 11 million households in more than 150 cities across India. Its joint venture company Media Pro is the exclusive distributor of over 70 pay TV channels nationwide.
Ankur Sahu, co-head of Asia private equity at Goldman Sachs, said: "We believe the cable industry in India is at an important inflection point and look forward to working closely with the management team to build the preeminent cable and broadband business in India."
Goldman Sachs has invested in cable and broadband related companies in several countries, including e-Access in Japan and C&M in South Korea.
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