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Star to buy out DEN’s 50% stake in distribution JV for Rs 40.35 crore
MUMBAI: DEN Networks is selling its entire 50% stake in Star DEN to joint venture partner Star India for Rs 40.35 crore (Rs 403.5 million).
The two companies have entered into a share purchase agreement.
After completion of the share transfer to Star, DEN will cease to be a shareholder in Star DEN. The JV agreement between the parties will stand terminated.
Star DEN was formed in 2008 as an equal JV between Star and DEN with the vision to create efficiencies in the distribution sector. The JV agreement was signed on 14 January 2008 and was restated on 26 May 2011.
The company was distributing Star India channels via all fixed networks including cable, DTH, IPTV, HITS and MMDS. Apart from Star channels, it was also distributing NDTV channels.
In 2011, the company formed an alliance with another distribution JV, Zee Turner, to form MediaPro, a pay TV behemoth with most of the popular channels.
MediaPro ceased operations in November 2014 in the aftermath of the Telecom Regulatory Authority of India’s (TRAI) regulation on content aggregators, which disallowed bundling of channels of more than one broadcaster.
Following the split, Star and Zee set up their own distribution teams. Ever since the disbanding of MediaPro, Star DEN had lost its relevance.
Shares of DEN rose 15.74% on Wednesday to close at Rs 95.95 on the BSE.