Siti Cable, the Zee family promoted enterprise, has acquired the RPG Enterprises firm Indian Cable Net Co Ltd, Kolkata's leading multi-system operator for cable television, after edging out Sun network owned by the Maran brothers of Chennai.
RPG Enterprises confirmed on Saturday that it had entered into an agreement with Siti Cable to transfer its entire interest in Indian Cable Net, formerly known as RPG Netcom, after brief negotiations.
For several weeks preceding this, Sun had been negotiating with ICC but the deal had not made much progress. "The decision on the buyer was taken on the basis of the merits of the proposal and also because the decision was quicker," said sources close to the development.
The sale of ICN to Sun was also reportedly opposed by West Bengal's Left Front government as it was uncomfortable with the strong political connections of the Sun network.
The huge degree of under-reporting of cable TV connections in Kolkata, and problems caused by last mile cable TY operators, would both be corrected because SCN-ICN combine would have more than two-thirds of the city cable TV market, the source added.
An RPG spokesman said in Kolkata that the Rs 7000 crore (Rs 70 billion) group was exiting from the cable TV business as it was not a part of its core businesses of power, transmission engineering, tyre, retail and information technology.
ICC had the largest share of cable TV business in the Kolkata metro area and this acquisition would give SCN a leadership position in eastern India.
Dilip Sen, director of ICN, said SCN had a substantial stake in Kolkata's cable TV business and would continue to provide high quality signal to viewers.
Sun is out