RCom may merge pay TV arm with Digicable

MUMBAI, INDIA: Reliance Communications, controlled by billionaire Anil Ambani, was close to a deal to combine its pay TV businesses with unlisted cable TV distributor Digicable Network (India), newspapers reported on Wednesday, citing unnamed sources.

After the merger, Reliance Communications, which is in the process of selling its cellular tower business to GTL Infrastructure, would own a majority stake in the restructured firm in the all-stock deal, the Mint newspaper said, citing an unnamed source.

The Economic Times, citing an investment banker, said Reliance Communications would own 60 per cent of the combined firm, while private equity fund Ashmore would be among the minority investors.

Earlier there were reports that Saudi's STC in in talks to buy a stake in GTL-Reliance Infratel, which the Saudi telecom provider denied.