NEW DELHI: With an aim of creating a distinct identity for each of its enterprises, major multi-satellite operator Den Networks Ltd to merge 23 subsidiaries in the cable business and to de-merge its broadband business into a wholly owned subsidiary.

The Board of Directors has granted in-principle approval for the changes following corporate action subject to regulatory and shareholder approval.

The aim is to strengthen the single brand leading to a stronger market presence, providing customers with a seamless on-board experience, and removing any other brand perceptions and distinctions in customers' minds.

The structure will result in economies of scale and reduce administrative and regulatory compliances and a more focused operational effort, realising synergies in terms of compliance, governance, administration and cost synergies.

The de-merger of broadband will enable a focused attention on the Internet Service Provider business and achieve structural and operational efficiency, enhanced competitiveness and greater accountability besides accelerating value creation for shareholders, the company said.

Furthermore, the separation will allow DEN to aggressively focus on the significant growth potential for high speed data and related services in India.

DEN also intends to take the lead in driving wire line broadband penetration in India.

DEN Networks CEO Pradeep Parameswaran said, “We are focused on creation of a distinct identity for each of our businesses and the recent in-principle board approval is a step in this direction. This corporate structure will strengthen the  brand while also giving us an opportunity for shareholder value creation.”