STAR Group and Balaji Telefilms have jointly agreed to terminate the agreements entered into between them on 18th August 2007, relating to the regional languages joint venture. Both STAR and Balaji are now free from their respective rights and obligations under the said agreements.
The promoters of Balaji Telefilms are entitled to purchase, either on their own account and/or through a third party(ies) nominated by them, the shareholding held by Star through its group entity, Asian Broadcasting FZ-LLC (ABF) in Balaji Telefilms for an aggregate price of Rs 190 per share. It maybe recalled that ABF had acquired a 25.99% equity interest in Balaji Telefilms earlier.
The relationship between STAR and Balaji Telefilms as broadcaster and content provider will not be affected and both parties are keen on continuing the same. All the six existing Balaji shows, currently on air with STAR Plus, will continue on terms mutually agreed upon by the two parties. Both parties have also agreed to commence work on a new show to replace an existing show, which will be launched before 30th November 2008.
Uday Shankar, CEO, STAR India, said, “STAR and Balaji Telefilms have agreed to determine all prior agreements such that each side is freed from all respective rights and obligations arising from such agreements. The new arrangement allows both parties to take the best advantage of emerging opportunities in broadcasting and content creation.”
Shobha Kapoor, managing director, Balaji Telefilms, said, “STAR and Balaji Telefilms have enjoyed a successful relationship over the past few years, one that has been to the mutual benefit of both. We are keen to continue this relationship in the best spirit going forward. This agreement with STAR releases Balaji Telefilms from its various obligations and opens up very exciting opportunities for it.”