Advertisement

Zee Entertainment Enterprises Limited Declares Merger With Sony Pictures Networks India

Post the merger, Sony will invest a whopping amount of $1.57 billion, becoming the majority stakeholder since it will have a 52.93% controlling stake.

Zee Entertainment Enterprises Limited Declares Merger With Sony Pictures Networks India
SHARES

On Wednesday, Zee Entertainment Enterprises Limited (ZEEL) proclaimed a merger with Sony Pictures Networks India (SPNI), highlighted accounts. Post the merger, Sony will invest a whopping amount of $1.57 billion, becoming the majority stakeholder since it will have a 52.93% controlling stake. On the other hand, stakeholders from ZEEL will have a 47.07% stake.

The ZEEL board is said to have approved this merger, adding that Puneet Goenka will continue to be the Managing Director and CEO of the merged unit. In a statement released by the ZEEL board, they elaborated on how not only were the financial parameters evaluated, but the strategic value the partner gets to the company was also considered.

According to reports, the companies have initiated a non-binding agreement, wherein their linear networks, digital assets, program libraries and production operations will be amalgamated.

The ZEEL board added that this merged company will continue to be a listed company in the country.

Based on the term sheet, there is a duration of 90 days for both firms to indulge in mutual diligence, conclude definitive agreements, said Zee in an exchange filing, based on narratives.

It further elucidated that the proposal for the merger will be presented for approval to the shareholders.

Some reports went on to state that with existence in television broadcasting and digital media, Zee also has brands such as Zee TV. It is alleged that it had been under pressure for a management reshuffle from top investors that comprised the exit of Punit Goenka, the CEO, from the board. 

Also Read: Fatalities In Versova Beach Mishap Increase

RELATED TOPICS
MumbaiLive would like to send you latest news updates