Zee Entertainment to Merge With Sony Pictures Networks: Read Highlights
Zee CEO Punit Goenka will continue as the CEO of the merged entity with Sony Pictures Networks.
The Board of Directors of Zee Entertainment Enterprises Limited (ZEEL) have given an in-principle approval for a merger with Sony Pictures Networks India (SPNI), according to a regulatory filing.
ZEEL Chairman R Gopalan stated, “As a Board that encompasses a blend of highly accomplished professionals having rich expertise across varied sectors, we always keep in mind the best interests of all the shareholders and the Company.”
Here are some of the highlights of the merger:
Zee Entertainment will hold 47.07 percent of stake in the merged entity while Sony Pictures will hold a majority stake of 52.93 percent. Sony Pictures Entertainment will supposedly infuse $1.57 billion into the merged entity.
Zee Entertainment Chief Executive Officer Punit Goenka will continue as MD & CEO of the merged entity while Sony Group will nominate the majority of the Board of Directors.
ZEEL is known for content creation and Sony Pictures has experience in entertainment and gaming. The merger is expected to add value to both companies and will help ZEEL stay on course to “chart a strong growth trajectory.”
The merged entity will be publicly listed and ZEEL and SPNI will conduct a 90-day due diligence process.
Both companies have agreed to combine digital assets, program libraries, and production operations as part of the deal.
As business continues, the existing promoter family of Zee will have the option to increase their shareholding from the current 4% up to 20% in accordance to applicable law.
“Basis the existing estimated equity values of ZEEL and SPNI, the indicative merger ratio would have been 61.25% in favour of Zee,” the regulatory filing said, according to a report in Financial Express.
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