Den Networks to sell 55% Den Sports stake to Wall Street Investments
02 April 2016
Cable TV distribution company Den Networks will sell 55 per cent of Den Sports, which indirectly owns Indian Super League team Delhi Dynamos, to Wall Street Investments for about Rs43.32 crore.
The company has "entered into an agreement with Wall Street Investments for selling off 55 per cent equity in Den Sports for a consideration of Rs43.32 crore," Den Networks stated in a filing with the Bombay Stock Exchange (BSE).
''This includes the sale of shares from Den Network and preferential allotment by Den Sports", it added.
The cable and broadband company has been looking to dilute stake in its soccer business for some time as part of its drive to focus on its core business.
Both firms entered into sales agreement on 29 March 2016. Prior to the agreement, Den was holding 100 per cent equity shares in Den Sports, which in turn owns 100 per cent equity stake in Den Soccer. Den Soccer is the operating company which owns, controls and manages Indian Super Leagues team Delhi Dynamos.
On Friday, the shares of Den Networks settled 13.82 per cent higher at Rs98.85 per share on the BSE.
Wall Street Investments was represented by principals of GMS (JLT), which is based out of Dubai. GMS (JLT) has interests in the shipping industry.