News - Media Centre
STAR affiliate to acquire stake in Balaji Telefilms in India
STAR Group (STAR) and Balaji Telefilms Ltd. (Balaji) announce that Asian Broadcasting FZ-LLC (ABF), a STAR affiliate, and Balaji today reached a definitive agreement under which ABF would be issued approximately 13.694 million shares at Rs 90 per share to give it a 21% stake in Balaji by investing a total of Rs.1.23 billion in Balaji. Following completion of the acquisition, which is subject to regulatory approvals, ABF expects to be able to hold up to 26% in Balaji following the public offer to the shareholders of Balaji as per the Takeover Regulations and/or through warrants that will be issued to it.
The acquisition of Balaji is in line with STAR’s strategy of increasing content production in India . Balaji is the largest content production company in India, producing shows in various languages including Hindi, Telugu, Tamil and Kannada. Its television productions such as Kyunki Saas Bhi Kabhi and Kahaani Ghar Ghar Ki regularly top the ratings charts in the country.
Commenting on the deal, Michelle Guthrie, CEO of STAR said, “We are excited to acquire a stake in Balaji, with whom we enjoy a productive and rewarding relationship. Balaji, under the continuing management and leadership of the Kapoors and with its unique pool of creative talent, has become one of the most important companies in the evolving and increasingly competitive media arena in India . As STAR continues to expand its services and offer more choices to viewers, we see enormous strategic benefits from strengthening our relationship with Balaji.”
Mr. Jeet endra Kapoor, Chairman, Balaji Telefilms Limited said, “We are excited about having Star as an investor in the company. We believe that the investment made in the company would assist in achieving a higher level of growth and in the process generate significant value for all the stakeholders.” Ambit Corporate Finance Pte Ltd. acted as the exclusive financial advisor to Balaji Telefilms Limited for the above transaction.
About ABF
ABF is an affiliate of STAR. STAR is Asia’s leading multiplatform content and service provider. STAR’s over 40 television services in seven languages reach more than 300 million viewers across 53 Asian Countries. STAR channels include Star Chinese Channel, Star Chinese Movies, Star Gold, Star Movies, Star News, Star Plus, Star Utsav, Star World, Xing Kong, Channel [V], ESPN, Star Sports, Vijay, Phoenix Chinese Channel, Phoenix Info News Channel as well as the distributed channels National Geographic Channel, A1 and The History Channel. STAR also owns the world’s largest contemporary Chinese film library, with more than 600 titles featuring superstars including Bruce Lee, Jackie Chan, Jet Li, Chow Yun Fat and Michelle Yeoh. Additionally, STAR has interests in cable system in India and Taiwan. Its services also extend to interactive cable TV, radio, wireless and digital media platforms. For more information about STAR, please visit www.startv.com.
About Balaji
Balaji Telefilms Limited is one of the most successful media companies and the largest fiction based Television content provider in India. The Company is primarily engaged in the production of Television software in Hindi, Telegu, Tamil, Malayalam and Kannada. Balaji Telefilms Limited has been promoted by actor Jeet endra, Shobha Kapoor and Ekta Kapoor and has to its credit many successfully serials, including Kynki Saas Bhi Kabhi Bahu Thi, Kahaani Ghar Ghar Ki, Kusumm, Kasauti Zindagi Kay, Hum Paanch (all in Hindi), Pavitrabandhanam, Kalisundaram Ra (Telugu), Kulla Villakku (Tamil), Kavyanjali (Malayalam). Balaji Telefilms Limited has a large content library and its programmes have consistently appeared in the top 50 programmes on all major Television Channels. The Company’s vision is to emerge as a complete media house covering the widest genres of Television programmes. For more information about Balaji Telefilms Limited, please visit www.balajitelefilms.com
Press contacts:
STAR:
Hong Kong
Jannie Poon
Tel: 852-26218728
Email: janniep@startv.com
Balaji Telefilms Limited:
R. Karthik Tel: 91-22-26732275
Email : karthik@balajitelefilms.com
Mumbai, Hong Kong August 18, 2004
STAR Group (STAR) and Balaji Telefilms Ltd. (Balaji) announce that Asian Broadcasting FZ-LLC (ABF), a STAR affiliate, and Balaji today reached a definitive agreement under which ABF would be issued approximately 13.694 million shares at Rs 90 per share to give it a 21% stake in Balaji by investing a total of Rs.1.23 billion in Balaji. Following completion of the acquisition, which is subject to regulatory approvals, ABF expects to be able to hold up to 26% in Balaji following the public offer to the shareholders of Balaji as per the Takeover Regulations and/or through warrants that will be issued to it.
The acquisition of Balaji is in line with STAR’s strategy of increasing content production in India . Balaji is the largest content production company in India, producing shows in various languages including Hindi, Telugu, Tamil and Kannada. Its television productions such as Kyunki Saas Bhi Kabhi and Kahaani Ghar Ghar Ki regularly top the ratings charts in the country.
Commenting on the deal, Michelle Guthrie, CEO of STAR said, “We are excited to acquire a stake in Balaji, with whom we enjoy a productive and rewarding relationship. Balaji, under the continuing management and leadership of the Kapoors and with its unique pool of creative talent, has become one of the most important companies in the evolving and increasingly competitive media arena in India . As STAR continues to expand its services and offer more choices to viewers, we see enormous strategic benefits from strengthening our relationship with Balaji.”
Mr. Jeet endra Kapoor, Chairman, Balaji Telefilms Limited said, “We are excited about having Star as an investor in the company. We believe that the investment made in the company would assist in achieving a higher level of growth and in the process generate significant value for all the stakeholders.” Ambit Corporate Finance Pte Ltd. acted as the exclusive financial advisor to Balaji Telefilms Limited for the above transaction.
About ABF
ABF is an affiliate of STAR. STAR is Asia’s leading multiplatform content and service provider. STAR’s over 40 television services in seven languages reach more than 300 million viewers across 53 Asian Countries. STAR channels include Star Chinese Channel, Star Chinese Movies, Star Gold, Star Movies, Star News, Star Plus, Star Utsav, Star World, Xing Kong, Channel [V], ESPN, Star Sports, Vijay, Phoenix Chinese Channel, Phoenix Info News Channel as well as the distributed channels National Geographic Channel, A1 and The History Channel. STAR also owns the world’s largest contemporary Chinese film library, with more than 600 titles featuring superstars including Bruce Lee, Jackie Chan, Jet Li, Chow Yun Fat and Michelle Yeoh. Additionally, STAR has interests in cable system in India and Taiwan. Its services also extend to interactive cable TV, radio, wireless and digital media platforms. For more information about STAR, please visit www.startv.com.
About Balaji
Balaji Telefilms Limited is one of the most successful media companies and the largest fiction based Television content provider in India. The Company is primarily engaged in the production of Television software in Hindi, Telegu, Tamil, Malayalam and Kannada. Balaji Telefilms Limited has been promoted by actor Jeet endra, Shobha Kapoor and Ekta Kapoor and has to its credit many successfully serials, including Kynki Saas Bhi Kabhi Bahu Thi, Kahaani Ghar Ghar Ki, Kusumm, Kasauti Zindagi Kay, Hum Paanch (all in Hindi), Pavitrabandhanam, Kalisundaram Ra (Telugu), Kulla Villakku (Tamil), Kavyanjali (Malayalam). Balaji Telefilms Limited has a large content library and its programmes have consistently appeared in the top 50 programmes on all major Television Channels. The Company’s vision is to emerge as a complete media house covering the widest genres of Television programmes. For more information about Balaji Telefilms Limited, please visit www.balajitelefilms.com
Press contacts:
STAR:
Hong Kong
Jannie Poon
Tel: 852-26218728
Email: janniep@startv.com
Balaji Telefilms Limited:
R. Karthik Tel: 91-22-26732275
Email : karthik@balajitelefilms.com
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