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Packer's Nine arm to merge with Balaji Telefilms

Our Bureau

MUMBAI, Nov. 21

NINE Network Entertainment India Pvt Ltd, a wholly-owned subsidiary of Nine Broadcasting India Pvt Ltd, is merging with Balaji Telefilms Ltd (BTL).

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.

BTL is promoted by film actor Jeetendra.

Nine Broadcasting India handles the `Nine Gold' block of programming on DD Metro. Its subsidiary, Nine Network Entertainment, was engaged in developing television software.

When contacted, Mr Sanjay Doshi, CEO of BTL, said that the transaction involved only shares on a swap ratio of 65 shares of BTL for every 200 shares of Nine Network Entertainment India.

Both companies are into production of television software and programme rights vested earlier in Nine Network Entertainment India, will now belong to BTL, he said.

Some of the software needed for Nine Gold is done by Nine Network Entertainment India.

BTL has just completed an IPO, the final fixed price portion of the same closing with a one-time oversubscription on November 3. The book-built portion, which closed on October 12, was oversubscribed twice.

The National Stock Exchange officially said today that BTL's shares would be admitted to dealings on the bourse on Wednesday.

Asked about the timing of the announcement, on the eve of BTL's listing, Mr Doshi said there was no deal in the making while BTL's road-show was in progress. ``It all happened very recently,'' he said.

The merger brings alongside two new directors from Kerry Packer's team to BTL's board -- Mr Anthony Klok, Country Manager, Nine Broadcasting and Ms Raveena Raj Kohli, CEO, Nine Broadcasting India, Mr Doshi said.