Sahara To Buy Digicable: Sources

The cable and broadband service provider Digicable Network (India) Pvt. Ltd. is set to be acquired by Sahara India, according to industry sources.

"Sahara is in final stages to buy a controlling stake in Digicable's business for around US$50 million (INR 2.7 billion). At least 3 meeting have taken place between Digicable & Sahara in last 2 months," says the source who wished anonymity.

The transaction will enable Sahara to foray into the digital cable space which is estimated to be over INR 20,000 crore currently. The government has set a deadline of 2014 to digitize the cable network and hence it will add significant revenues to Sahara.

Established in 2007, Digicable provides digital feeds to around 450 TV channels in the country and competes with players like Hathway, Den Networks and Citicable.

Earlier in 2010, Reliance Communications Ltd. was set to acquire the company but the deal failed to get the required regulatory approvals.

According to the sources, close to the developments, the key challenge for this acquisition is the accumulated debt of over INR 600 crores, which DigiCable currently has.

Sahara India is a major entity having diversified business interests that include finance, infrastructure & housing, media & entertainment, consumer merchandise retail, manufacturing and information technology.

Jatinder Singh, Principal Correspondent, Light Reading India