Star TV has decided to offload 3 per cent of its holding in Zee Telefilms. Star has offered Zee the stake as its promoters have the first right of refusal. Only if Subhash Chandra refuses to pick up the shares can Star sell it in the open market.
However, it is not known whether the stake transfer will be at the market price (now ruling at around Rs 167) or whether Star will seek a fresh valuation.
According to Zee Telefilms, when the shares were allotted to the company, it was classified as an allotment to a foreign investor. However, when the shares were dematerialised, the holding was classified under “Indian company” and dividends were being paid in rupees.
Zee Telefilms initially had three 50:50 joint ventures with Star TV: Siticable, Programme Asia Trading Company and Winter Heath (the holding company of Asia Today).
Zee, in March 2000, acquired Star’s 50 per cent holding in all the three ventures for $290 million of which 50 per cent was paid in stock by allotting a 3.9 per cent stake in Zee Telefilms to Star TV.
As per the equity holding pattern of Zee Telefilms on March 31, 2002, the Indian promoters hold 23.32 per cent and the foreign promoters hold 29.46 per cent.
Source: Business Standard