MUMBAI: Michelle Lee Guthrie has returned to the Balaji Telefilms board as director. The company has posted an announcement at the Bombay Stock Exchange (BSE) about Guthrie’s return.
Liza Jane Newnham, alternate director to Guthrie, has ceased to be the director of the company on return of the original director, Michelle Lee Guthrie to the state of Maharashtra, states the announcement. Newnham had replaced Guthrie in October 2005 on a temporary basis.
The Star Group chief executive officer joined the board of Balaji as additional director in January 2005. Guthrie was appointed as a non-retiring director, following the allotment of 21 per cent (13,694,193 equity shares) of the total post issued paid up share capital of Balaji to Asian Broadcasting FZ-LLC (ABF), a Star Group affiliate, for Rs 1.23 billion.
Tag: ABF
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Michelle Guthrie returns to Balaji board as director
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Star makes open offer for 20 % stake in Balaji
MUMBAI: Following up on the announcement made last week that Star Group affiliate Asian Broadcasting FZ LLC (ABF) was to take a 25.1 per cent stake in Balaji Telefilms, an open offer has been made by ABF to the shareholders of the production major.
ABF is to make an open offer to Balaji shareholders for acquiring a 20 per cent stake in India’s leading television soap factory at a price of Rs 90 per share aggregating Rs 1173.8 million payable in cash.
The open offer is for 13,042,089 fully paid up equity shares of Rs 2 each, representing 20 per cent of the voting post issue equity capital of Balaji at a price of Rs 90 per share, fund manager to the offer DSP Merrill Lynch informed the Bombay Stock Exchange (BSE) today. The offer opens on 18 October 18 and closes on 16 November.
No other person is acting in concert with the ABF for the offer, DSP Merrill Lynch said, adding the offer was not conditional on any minimum level of acceptance by the share holders.
In a related development meanwhile, market regulator Securities and Exchange Board of India (Sebi) has initiated an investigation into charges of insider trading against Balaji in the run up to the announcement of the deal with Star, Sebi officials confirmed to indiantelevision.com. Sebi officials admitted to having initiated the process of gathering data but declined to divulge any further developments.
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Full text of Star Group’s official statement on Balaji stake acquisition
MUMBAI: Star Group and Balaji Telefilms Ltd. Balaji announced 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 per cent 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 per cent 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 Bahu Thi and Kahaani Ghar Ghar Ki regularly top the ratings charts in the country.
Commenting on the deal, Star Group CEO Michelle Guthrie says, “We are thrilled 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.”
Balaji Telefilms chairman Jeetendra Kapoor says, “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.”