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Balaji Telefilms board approves 25% stake sale to RIL
MUMBAI: Television content production company Balaji Telefilms’ board has approved the allotment of 2.52 crore equity shares to Mukesh Ambani-led Reliance Industries Ltd (RIL) for a total consideration of Rs 413.28 crore.
The RIL board in July approved the acquisition of around 24.9% in Balaji Telefilms by acquiring 2.52 crore shares for Rs 413.28 crore.
The board has approved allotment of 2.52 crore equity shares of face value of Rs 2 each at Rs 164, including a premium of Rs 162 per equity share, for a total consideration of Rs 413.28 crore, Balaji Telefilms said in a BSE filing.
The proceeds from the transaction would be utilised to further speed up content development initiatives, especially for its over-the-top content platform ALTBalaji.
The deal will help ALTBalaji to compete with other OTT service providers, including Indian and global majors like Netflix and Amazon Prime Video. The space has seen intense activity and has television networks like Star India, Sony and Zee having their own OTT platforms in the form of Hotstar, Sony Liv, Ditto TV and OZEE.
RIL will get stake in a television content company, a movie production business and, above all, an OTT business in ALTBalaji. RIL already has a presence in all these business lines. Colosceum, however, is a small production house compared to Balaji Telefilms. The OTT platform, Voot, is under Viacom18, a 50:50 joint venture between TV18 and Viacom.
Shares of Balaji Telefilms closed Tuesday at Rs 154.60, down 2.24%, on BSE.