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Providence ups stake in India's Hathway Cable & Datacom

  • Andrew Woodman
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Providence Equity Partners has increased its stake in Indian cable and broadband operator Hathway Cable & Datacom by injecting INR1.5 billion ($25.1 million) alongside the promoter.

Providence will invest INR1.1 billion in the company while the rest will come from Hathway Investments - an entity owned by the promoter - for a total 3.55% stake. According to a regulatory filing, Providence will subscribe to around 3.8 million shares and the promoter group to 1.4 million shares at INR284 apiece for stakes of 2.6% and 0.95%, respectively.

The transaction will take Providence's total stake in the company to 12.5%. The promoter group will be left with more than 50%.

Providence and Macquarie Bank together acquired a 17.3% stake in Hathway Cable from media giant News Corp. for INR3.5 billion through a secondary transaction last year. The two picked up the shares for INR145 apiece.

Hathway provides cable television services across 140 cities and towns and high-speed cable broadband services across 21 cities. It serves 1.4 million  broadband-enabled homes, representing a more than 50% market share in India.

Hathway was previously backed by ChrysCapital Partners. The PE firm held a 13.26% stake in the company, which it divested for about $71.7 million in 2010. It paid INR264 ($56.8 million) in its initial investment in 2007.

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