MUMBAI: Balaji Telefilms on Monday announced allotment of 21 per cent (13,694,193 equity shares) of the total post issued paid up share capital of the company to Asian Broadcasting FZ-LLC (ABF), a Star Group affiliate, for Rs 1.23 billion.

Star Group chief executive officer Michelle Guthrie and John Yu Leung Lau, nominees of ABF, have joined the board of Balaji as additional directors. Guthrie is appointed as a non-retiring director, the Balaji board said at its meeting today.

ABF will, along with its open offer, acquire 32.24 per cent of the total paid up post issue share capital of Balaji Telefilms. But it will reduce its shareholding in Balaji to 25.99 per cent by 7 July 2005, as required by the Foreign Investment Promotion Board (FIPB) approval.

Guthrie and Lau have been appointed as the additional directors with effect from the date on which the open offer made by ABF for the shares of Balaji Telefilms is completed, an official release said.

The Balaji board has convened an extraordinary general meeting of the shareholders on 25 February to obtain the shareholders approval for appointment of the new directors.