The agreement specified that Zee had to make the payment for acquiring threelocal joint-venture companies with Star TV in two equal instalments. ZeeTelefilms was to pay the first tranche of around $75 million by March 31,2000, while the second instalment was to be made by September 30. Star'sentire 50 per cent stake in the Hong Kong-registered broadcasting companyAsia Today Ltd, as well as its 50 per cent stake in SitiCable and Patco, wastransferred to Zee Telefilms for $296.51 million.

According to the deal, Star TV was to be paid half the consideration incash, while the other half was to be converted into equity in Zee Telefilms.Zee Telefilms had earlier allotted Star TV 1.6 crore preferential sharestowards 50 per cent of the consideration for its acquisition in the threejoint-venture companies at a rate of Rs 4,000 per share. This amounted to 4per cent of the equity in Zee Telefilms.

"We had allotted the Zee Telefilms shares to Star TV on January 24," acompany source said.

Of the $150 million cash component, Zee Telefilms will pay $140 million frominternal accruals and equity funds. The balance will be through short-termrupee loans from ANZ Grindlays and ICICI. "Around 10 per cent of the paymentwill be through bridge loans from our company bankers," Jaju said.

The equity funds will include part of Zee Telefilms' private placement inGoldman Sachs. Zee Telefilms had issued warrants at Rs 1,000 per share tothe foreign institutional investor for a 2 per cent stake. Part of thewarrants is being converted. The balance will be due for conversion by April24.

Jaju, however, did not disclose the break-up of the internal accruals andequity funds. "We are taking a decision on Friday on this," he said.Along with the interest liability, Zee Telefilms had to pay around $150million in cash. At the time of agreement, the company had stated that itowed $148.25 million.