Client Situation
- Leading global investment bank with a PE arm looking to expand its presence in India
- Actively looking for targets in cable/broadband space post regulatory changes rapid digitization
- Cedar was mandated to conduct commercial due diligence with a specific focus on growth of cable broadband in India
- The Identified target had a large footprint reaching ~11 Mn households across 20 cities & 13 states
Cedar’s Approach
- Detailed assessment of cable broadband industry from a demand, market, & technology standpoint
- Competitive analysis of top players within the cable broadband segment
- Long term sustainability of cable broadband & the impact of emerging technologies such as 4G & LTE
- Detailed target assessment with a focus on current business model & long term market potential
- Recommended an operating model & way forward strategy with immediate & long term projections
Outcome
- Investment of $110Mn was made giving it a significant equity position
- Substantial rise of target’s share price & market cap then operating at a 52 week high
- Renewed segment focus via the induction of a cable broadband segment head
- Technology infrastructure upgrade from a DOCSIS 2.0 to 3.0
- Significant Increase in target’s footprint to 13 Mn households & 6Mn digital subscribers