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Asian Broadcasting has agreed to reduce its shareholding to 26 per cent of the total paid-up share capital of the company if it acquires shares in excess of 26 per cent.

Mumbai , Aug. 18

THE much talked about stake offer of Balaji Telefilms Ltd to Star has finally proved right.

The television content company today announced that it has received the board's approval to make a preferential allotment of 17,263,790 shares/warrants convertible into shares representing 25.1 per cent holding to Asian Broadcasting FZ-LLC, an affiliate of Star Group Ltd, at Rs 90 per share.

The allotment has two parts to it - 21 per cent in shares and 4.1 per cent in warrants convertible into shares. Balaji Tele will offer 13,694,193 shares representing 21 per cent holding to Asian Broadcasting at Rs 90 per share. It will offer share warrants convertible into 3,569,597 equity shares constituting 4.1 per cent stake at Rs 90 per share with 10 per cent of the consideration for the warrants.

The warrants will be convertible into equity shares for a period of 18 months from the date of the issue only if the investor's shareholding at the time of conversion is less than 26 per cent of the total paid-up equity share capital of the company.

Balaji Tele will get Rs 123.25 crore for the preferential allotment of 21 per cent stake to Asian Broadcasting.

As a result of this investment, Asian Broadcasting will make an open offer to acquire shares of Balaji Telefilms at a price determined in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

Asian Broadcasting has agreed to reduce its shareholding to 26 per cent of the total paid-up share capital of the company if it acquires shares in excess of 26 per cent in a manner to be mutually agreed with the company and its promoters.

For the quarter ending June 2004, promoters' holding in Balaji Tele stood at 52.92 per cent; FIIs hold 21.58 per cent.

The share price of Balaji Telefilms ended down at Rs 92.15, against the previous close of Rs 97.65 on the BSE. However, the announcement was made after the bourses stopped trading for the day. The company officials could not be contacted for further details.

More Stories on : Preferential Allotments | Preferential Allotments | Radio/TV

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