China Media Capital (CMC) and Star China's management are to buy out the 47 percent of Star China TV currently controlled by 21st Century Fox (21CF).
CMC, China's leading media and entertainment investment fund, bought a controlling stake in the satellite TV network formerly owned by News Corporation in 2010. Star TV has three 24-hour channels.
"This latest transaction marks a new era for Star China and we remain committed to building the company into one of the most respected entertainment companies in China," said Chairman of CMC Li Ruigang.
Established in 2010, CMC's very first deal was the acquisition of Star China.
"Today's divestment underscores our broader agenda of streamlining our affiliate ownership structures,"said James Murdoch, Deputy Chief Operating Officer of 21CF.
21CF is a multinational mass media corporation and one of two companies created by the 2013 split of Rupert Murdoch's News Corporation.
CMC's prominent partners include China Development Bank, one of China's largest financial institutions.