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Confirming what was already known in trade circles, the board of directors of Balaji Telefilms Ltd and Nine Network Entertainment India Private Ltd (a wholly-owned subsidiary of HFCL Nine Broadcasting), in their respective board meetings held today, announced they have decided not to proceed with the merger of the two companies.
Both Balaji Telefilms and Nine Network feel it is in their respective commercial interests not to proceed with the merger at this stage as the synergies that were anticipated to arise from the proposed merger are no longer seen to exist, a press release issued jointly said.
HFCL Nine Broadcasting India Ltd wishes to focus for the time being on its existing broadcasting activities rather than the acquisition of interests in content production companies, a company release said.
Both Balaji and HFCL Nine look forward to continuing their existing relationships, the release concludes.
As per the deal announced last November between the two parties, Balaji Telefilms was to acquire Nine Entertainment India for Rs 340 million under a swap ratio where 65 shares of Balaji would be swapped for 200 shares of HFCL Nine. Post-acquisition, HFCL Nine was to hold 20 per cent equity in Balaji Telefilms.
Balaji-HFCL Nine merger off?
Balaji board to meet on merger with HFCL Nine tomorrow
