Mumbai: Cable TV services provider Den Networks has announced that it has received board’s approval to demerge its broadband/internet service provider (ISP) arm Skynet Cable Network.
Den networks informed the BSE that the board of the company in its meeting held yesterday “considered and approved” the demerger of the broadband business.
According to Den Network, the demerger of Broadband arm Skynet Cable Network was done to achieve structural and operational efficiency and enhance competitiveness and greater accountability and to have a focused attention in the ISP business.
Its ISP arm had a turnover of Rs 40.63 crore in FY 2015-16 and contributed 3.53 per cent shares in its total revenue.
Den Networks further added that there would be no change in the shareholding pattern of the company and Skynet pursuant to the scheme.
The scheme would be subject to approval of the shareholders, who will meet on 29th September 2016.