Star Network sells its 25.99% in Balaji

06 Aug,2015

By Ravi Teja Sharma

 

Rupert Murdoch-owned Star Network has sold its entire shareholding of 25.99% in Ekta Kapoor promoted Balaji Telefilms in a block deal on the Metropolitan Stock Exchange of India (MSEI) at an average price of Rs 63.6 a share. This values the block deal at around Rs 108 crore.

 

“This confirms Star’s exit of a minority stake of 25.99% in Balaji Telefilms,” said Uday Shankar, CEO Star India.

 

“Axis capital acted as advisors to Star and also executed the on-market sale on August 5th 2015. This is in line with our strategy to focus on core businesses where Star has the ability to shape and scale the future growth path of its investments. Our programming and contractual relationships with Balaji are deep and we continue to work on strengthening them to our mutual benefit,” he added.

 

Star had bought 21% stake in the company in 2004 for Rs 90 per share and had raised it to 25.99% later through an open offer.

 

The production house had an exclusivity deal with Star. Balaji Telefilms is known for some of the top soaps such as Kahani Ghar Ghar Ki, Kyunki Saas Bhi Kabhi Bahu Thi and Kasuati Zindagi Ki.

 

Balaji Telefilms’ shares were up 19.96% to 95.25 at the close of trading on Wednesday.

 

Source:The Economic Times

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