The company on Monday acquired 13.69 million shares of Balaji by way of preferential allotment, it said in a communique to the Bombay Stock Exchange.
The proposal for allotting the shares to Asian Broadcasting was approved by the Balaji board of directors. Post this deal, Star group would have to make an open offer and take up its stake in Balaji to 32.24 per cent.
However, Asian Broadcasting has to dilute its stake to 25.99 per cent by July to conform to FIPB norms.
As per an earlier announcement by Balaji, the Board appointed Michelle Guthrie and John Yu Leung Lau, nominees Asian Broadcasting, as additional directors on the Board of the company, with the former being appointed as a non-retiring director.
Shareholders' approval of the appointment of the two additional directors would be sought at an extraordinary general meeting to be held on February 25.
