Balaji Telefilms and HFCL-Nine Broadcasting India have mutually decided to call off the proposed merger. The business relationship between the two companies will, however, continue. Balaji supplies three-and-a-half hours of programming every week to Nine Networks for telecast in DD Metro.
The legal aspects and the other details are being sorted out. Balaji had earlier informed the stock exchanges that it would review the proposed merger with Channel Nine at its board meeting.
The deal between the two parties, announced last November, would have involved a swap ratio where 65 shares of Balaji would be swapped for 200 shares of HFCL-Nine Broadcasting India.
HFCL, the joint venture partner in the Channel Nine Broadcasting company, had recently been facing allegations of involvement with Ketan Parekh in the stock market crisis. Besides, the deadlock between DD Metro and Nine Networks has worried Balaji for expanding its business plans.
The Jeetendra-promoted company would have been assured of at least seven hours of television software supply each week from its merged partner. Besides, it wanted to get access to the formatted shows of Kerry Packer’s Channel Nine, which would have been adapted to Indian audiences.
Balaji Telefilms and Nine Network will come out with a joint release on Wednesday, reiterating that they had shelved their merger plans.
After the process of separation is over, Balaji will finalise its business plans. The production house will continue to look for alliances, which would offer the company business synergies.