New Delhi : 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 per 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 fallen Story of Star India and Balaji entering South Market:
Balaji Telefilms had an exclusivity deal with Star India. As per the original plan of Star India during 2004, they both were suppose to enter in to an agreement to launch Channels in South India as part of Star India expansion in South Indian Market, as Balaji Telefilms was faring well with top rated shows in almost all the South Indian markets.
However, due to major shuffling in top management at that point of time and changing market equations, the deal did not materialise and Star India went on to sign with Asianet Group to fulfil their ambition of entering South.
With the channel Asianet and Vijay TV already existing in Malayalam and Tamil market, the Star India and Asianet Group JV went on to launch Asianet Suvarna Channel in Kannada Market and Asianet Sitara Channel in Telugu market. While Suvarna managed to gain foot hold in Karnataka Market, Sitara failed to do so in AP market and got winded up in 2010.
Finally, Star India completed its South foray with the acquisition of Maa TV to gains foothold in AP market last year.
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.
