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Mumbai, Aug 19: The joint venture between the Star Group, the leader in the broadcast space in India and Balaji Telefilms, which is the custodian of some of longest running shows on Indian television, has finally come to an end. In an official communiqué on Tuesday, Balaji Telefilms informed the Bombay Stock Exchange, ‘‘The agreements entered into between Balaji and Star in April 2007 relating to the regional languages joint venture will also be terminated.’’ The Star Group held 25.99% stake in Balaji Telefilms via Asian Broadcasting FZ LLC. Under the termination agreement, Balaji's promoters can buy the entire 25.99% stake held by Asian Broadcasting at Rs 190 per share each within 240 days, failing which Star would be free to sell it to any other entity except a competitor. Therefore, the total valuation of the deal is estimated around Rs 300 crore. Sources disclosed the total revenues of the Star Group stand at Rs 1,200 crore, while that of Balaji Telefilms is approximately Rs 1,100 crore.
The Balaji Telefilms stock closed at Rs 169.25 on the BSE on Tuesday, down 1.94%.
The official statement also says that the content supply agreements between Star and Balaji for various shows produced by it will be modified to remove the restrictions imposed upon Balaji relating to exclusivity on certain prime time slots. The six existing shows produced by Balaji and currently on air with the Hindi general entertainment channel Star Plus, will continue on terms mutually agreed upon by the two parties. Both parties have also agreed to commence work on a new show to replace an existing show which will be launched before November 30, 2008.
Uday Shankar, CEO, Star India, said, “The relationship between Star and Balaji, as broadcaster and content provider will not be affected.” He added, “Star and Balaji have agreed to determine all prior agreements such that each side is freed from all respective rights and obligations arising from such agreements.” He also emphasised that the new arrangement allows both parties to take the best advantage of the emerging opportunities in broadcasting and content creation. BMR Advisors acted as the exclusive transaction advisor to Star. Shobha Kapoor, MD, Balaji Telefilms, said, “Star and BTL, have enjoyed a successful relationship over the past few years, one that has been to the mutual benefit of both. We are keen to continue this relationship, in the best spirit going forward.” She also said that the...
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