The merger between Zee Entertainment and Sony Pictures Network India has been approved. The Board of Directors of Zee Entertainment Enterprises has approved the agreement between ZEEL and SPNI (Sony Pictures Network India).
The merger between Zee Entertainment and Sony Pictures Network India has been approved. The Board of Directors of Zee Entertainment Enterprises has approved the agreement between ZEEL and SPNI (Sony Pictures Network India).
The Board has taken this decision not only with financial standards in mind, but also with a strategy. Regarding this merger, the Board believes that this merger will prove to be very good for the shareholders and shareholders.
According to Zee Business, ZEEL has merged with one of the leading media and entertainment companies in South Asia with a for-profit strategy. ZEEL management will now work to fully implement this merger.
Following the merger, Puneet Goenka will continue as the company's MD and CEO. A special investment strategy has also been formulated for this merger.
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Following the merger, Sony Pictures Entertainment will invest 75 1,575 million (about Rs 11,605 crore). The amount of this investment will be used for growth and Sony Entertainment will be the majority shareholder after the merger.
A non-binding term sheet has been signed between the two parties and we will work hard within 90 days. What is special is that even after the merger, the company will be listed on the Indian Stock Exchange and a non-competitive agreement will be signed between the two parties.
How will the stock change?
Following this merger between Zee Entertainment and Sony, there will be a number of changes regarding the partnership between the companies. That being said, the shareholding of ZEEL will then be 61.25% in the current scenario.
At the same time, the share capital will be changed after an investment of 75 1575 million by Sony. After this investment, ZEEL's investor share will be around 47.07% and Sony Pictures' shareholder will be 52.93%.
How is this deal?
A special non-binding term sheet has been signed between ZEEL and SPNI. The due diligence of the contract will be completed within the next 90 days.
The existing promoter family Zila will have the option to increase its stake from 4 per cent to 20 per cent. Sony Group will have the right to nominate most of the directors on the board.