CLSA Global invests $25m in Hathway Cable

The company received board approval to allot 4.7 million fully paid-up equity shares at a price of INR 320 apiece, totaling INR1.5 billion, at a meeting on September 10, a stock market filing shows. The transaction is still subject to approval from shareholders.

The deal - which will give CLSA a 2.8% stake - comes a week after Hathway said it was raising around INR3 billion through a preferential allotment of shares to two funds managed by Capital Group. The two funds will together pick around 5.8% stake of the diluted equity base.  

Last year Hathway raised INR2.5 billion through a preferential allotment to its promoters and other investors. It had raised INR1.5 billion from existing PE investor Providence in July of that year, and separately raised INR 1 billion from Steadview Capital, LTR Focus Fund and Massachusetts Institute of Technology.

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 in 2012. The two picked up the shares for INR145 apiece.

Other previous investors incude ChrysCapital Partners which held a 13.26% stake in the company, which it divested for about $71.7 million in 2010. It paid INR264 in its initial investment in 2007.

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. It generated revenue of INR 15.8 billion with net loss of INR1.1billion for the year ended March 31, 2014.

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• Topics
• Media
• South Asia
• PIPEs
• CLSA Capital Partners
• India
• Media
• PIPE