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Balaji Tele, Nine Network merger plans off

Our Bureau

MUMBAI, May 9

THE Boards of Balaji Telefilms Ltd and Nine Network Entertainment India Pvt Ltd in their separate meetings have decided not to proceed with the proposed merger.

The companies had announced plans for a merger in November.

``Both Balaji Telefilms and Nine Network feel it is in their respective commercial interests not to proceed with the merger at this stage as the synergies that were anticipated to arise from the proposed merger are no longer seen to exist,'' a statement issued by Balaji Telefilms said.

Besides, Nine Network's parent company -- HFCL-Nine Broadcasting India Ltd -- has shifted its focus on its broadcasting activities rather than content production.

Nine Broadcasting India is a 51:49 joint venture between Himachal Futuristic Communications Ltd (HFCL) and Publishing and Broadcasting Ltd (PBL), a company fully-owned by the business group of Australian billionaire and media tycoon, Mr Kerry Packer. Bal aji Telefilms is promoted by the film actor, Mr Jeetendra.

At the time of the merger announcement, the officials said the transaction involved only shares on a swap ratio of 65 shares of Balaji for every 200 shares of Nine Network Entertainment India.