Providence ups stake in India's Hathway

Providence, which seeks investments in media, communication, information and education on a global basis, bought the 52.8 million shares through its subsidiary P5 Asia Holding Investments (Mauritius) in an open market transaction. The transaction increases its holding to 17.2%, and leaves Macquarie with about a 3.1% stake.

Hathway is India's largest cable operator by revenue and by market capitalization, and services 140 cities and towns in the country. Regulators eased restrictions on foreign ownership in Hathway in August, removing it from the banned list for foreign institutional investment and allowing foreign investors to hold up to 74% of the company.

It was also included in the government's recent decision to permit up to 100% foreign ownership of several media platforms, including cable providers. Up to 49% of a company can be held by international investors without government approval; the remainder can be purchased with regulatory permission.

According to its most recent annual report, for the year ended March 2015, Hathway recorded revenue of INR10 billion, up from INR9.9 billion the year before. The company recorded a net loss of INR1.3 billion in 2014; losses a year later totaled INR1.8 billion.

Providence originally invested in Hathway alongside Macquarie in 2012. The two firms jointly paid INR3.58 billion to a subsidiary of News Corp, with Providence gaining a 9.9% stake and Macquarie getting 7.4%. Providence later increased its stake by 2.6% for INR1.5 billion in 2013.

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• Topics
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