After a year of announcing the merger, Mukesh Ambani led RIL has called off the merger of A year Den Networks, TV18 Broadcast, and Hathway Cable & Datacom into Network18 Media.
On Wednesday, Den Networks that is into cable distribution said it has decided to not proceed with the composite scheme of arrangement as part of which it was to merge into Network 18 together with sister concerns.
"Considering that more than a year has passed from the time the board considered the scheme, it has decided to not proceed with the arrangement envisaged in the scheme," Den said in a statement to the stock exchanges.
The news flows within one month of RIL opening its OFS to reduce its stake in Hathway and Den. The OFS for Den was fully subscribed while that for Hathway was partially subscribed.
Under the scheme of arrangement, TV18 shareholders would get 92 shares of Network18 for every 100 shares held by them. While Hathway and Den shareholders would get 78 shares and 191 shares (of Network18) for every 100 shares held by them.
The merger would have enabled Network 18 to expand in a scenario when consolidation is increasing in the sector and it could be seeking a strategic partner if required.