Balaji Tele, Nine Network to merge

By Our Staff Correspondent

MUMBAI, NOV. 21. Balaji Telefilms and Nine Network Entertainment India Pvt. Ltd., a wholly owned subsidiary of Nine Broadcasting India Pvt. Ltd. (an HFCL-Channel Nine promoted company) have agreed to merge at their respective board meetings held today subject to necessary legal approvals.

The swap ratio for the merger has been proposed at 65 shares of Balaji for every 200 shares of Nine Network Entertainment. This would result in an increase in capital by 2.6 million shares for Balaji which translates into post merger holding of 20 per cent for Nine Broadcasting India. Two representatives of Nine Broadcasting India, namely, Mr. Ravina Kohli and Mr. Anthony Klok, will join the board of Balaji on completion of the merger. The two companies were advised by Triumph International Finance on the transaction.

Balaji has recently come out with a public issue of 2.8 million shares at a price of Rs. 130 per share to part finance its investment in infrastructure to meet the growing demand for television content software.

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Section  : Business
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