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Our Bureau

New Delhi, Aug. 19 The Star Group and Balaji Telefims, makers of some of biggest television soaps, have decided to terminate their agreement under which Star held a 25.99 per cent stake in the production house. The stake was held through Star Group’s Asian Broadcasting FZ LLC (ABF) through an agreement entered in 2004.

According to an agreement reached between the parties concerned and approved by Balaji Telefilms’ board, the promoters of Balaji Telefilms, Ms Ekta Kapoor and her family, would be allowed to buy back the 25.99 per cent Star stake at Rs 190 a share from ABF within eight months, failing which these shares could be sold to any non-competing entity.

This would not trigger an open offer since it is not the company, but the promoters, who will be buying back the shares of a foreign collaborator, said a company spokesperson.

The founders currently have a 40.01 per cent stake in Balaji Telefilms.

The exclusivity arrangement , under which Balaji Telefilms, produced prime time content for Star, has also come to an end. The proposal to foray into regional television space with a Telugu channel has also been called off.

Balaji Telefilms is also producing shows for other channels, including the mythological Kahaani Hamaaray Mahaabhaarat Ki for 9X.

The stock, rising sharply on the news, closed later down 1.9 per cent at Rs 169.25, in line with broad market weakness.

Star is working on regional channels that are expected to be launched over the next few months. The company whose chief, Mr Rupert Murdoch, announced a $100-million investment in six new regional television channels on his recent visit to India, is starting with a Bengali general entertainment channel. Marathi and Gujarati channels are also in the pipeline.

There have been media reports, since Mr Murdoch’s visit, about a possible tie-up with Asianet Entertainment also.

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