Den Network rallies 9% as board okays preferential allotment to Goldman Sachs

NEW DELHI: Shares of Den Network rallied nearly 9 per cent in Friday’s trade after the company’s board approved allotment of 1.58 crore shares on a preferential basis to two affiliates of Goldman Sachs at Rs 90 apiece, which was 15 per cent higher than Tuesday’s closing price of Rs 78.25.

The company in a filing to BSE said Board Street Investments (Singapore) and MBD Bridge Street 2016 Investments (Singapore) --
affiliates of Goldman Sachs Group which is a non-promoter entity in Den Network — will be offered shares in cash consideration.

Following the development, the stock soared 8.64 per cent to hit a high of Rs 85 on BSE.

Goldman Sachs will pay Rs 142.43 crore at Rs 90 per share, to increase its holding in the cable company to 24.49 per cent from from 17.79 per cent earlier.

The promoter group shareholding in the company will, on the other hand, drop to 37 per cent.