Uday Shankar, CEO of STAR India, said: “This confirms Star’s exit of a minority stake of 25.99 per cent in Balaji Telefilms. Axis Capital acted as advisors to STAR and also executed the on-market sale on August 5, 2015. This is in line with our strategy to focus on core businesses, where STAR has the ability to shape and scale the future growth path of its investments. Our programming and contractual relationships with Balaji are deep and we continue to work on strengthening them to our mutual benefit.”
Balaji spokespersons were unavailable for comment at the time of filing this report. The buyer in the deal is undisclosed so far. The transaction took place on the Metropolitan Stock Exchange of India (MSEI). Star had picked up stake in Balaji in August 2004. At the time, the production house's serials were at the top of the ratings chart. However, four to five years later, competition from new shows and channels made a dent in the performance of these serials. Star made its intention to exit known back then, but was able to monetise the stake only now.
Shobha Kapoor, managing director, Balaji Telefilms said, “Balaji Telefilms has in place a verystrong growth platform in both the television and motion pictures segments. We are very optimistic about our growth outlook that is being driven by a highly capable leadership team. This transaction is reflective of our confidence in the company and its growth story.”