The Hindu : Business : Balaji Telefilms ends pact with Star group

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Wednesday, Aug 20, 2008
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Balaji Telefilms ends pact with Star group

MUMBAI: Balaji Telefilms on Tuesday said it was ending a four-year old association with the Star group under which an associate company of Rupert Murdoch-led global media conglomerate has been holding nearly 26 per cent stake in TV celebrity Ekta Kapoor-run entertainment content provider.

However, six existing shows produced by Balaji and now on air with ‘Star Plus’, would continue on terms mutually agreed upon by the two parties.

As per an agreement reached between the parties concerned and approved by the board of Balaji Telefilms, the promoters of the Indian company would be allowed to buy back 25.99 per cent stake from Asian Broadcasting FZ-LLC (ABF), an associate of the Star group, within eight months, failing which these shares could be sold to any non-competing entity.

Pursuant to the agreement, Balaji promoters are entitled to purchase the entire shareholding held by ABF in the company for an average price of Rs. 190 per share, within 240 days.

At the agreed price, which represents a premium of 9.8 per cent over the current market price, ABF’s holding would be worth Rs. 322.01 crore.

Besides, Balaji and Star have agreed to terminate another regional language joint venture agreement signed in April 2007, the company said in a release.

The content supply agreements with Star for various shows produced by the company would be modified to remove the restrictions imposed on Balaji relating to exclusivity on certain prime time slots. — PTI

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