Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Stock Report

| More

ZEE Entertainment Enterprises Ltd and Sony Pictures Networks India to merge

Posted On: 2021-09-22 08:53:46 (Time Zone: IST)


The Board of Directors of ZEE Entertainment Enterprises Limited (ZEEL) present and voting in its board meeting held on 21st September 2 021, unanimously provided an in-principle approval for the merger between Sony Pictures Networks India (SPNI) & ZEEL.

The Board has evaluated not only on financial parameters, but also on the strategic value which the partner brings to the table. The Board concluded that the merger will be in the best interest of all the shareholders & stakeholders. The merger is in line with ZEEL's strategy of achieving higher growth and profitability as a leading Media & Entertainment Company across South Asia. The Board has authorized the management of ZEEL to activate the required due diligence process.

The shareholders of SPNI, will hold a majority stake in the merged entity. The shareholders of SPNI will also infuse growth capital into SPNI as part of the merger such that SPNI has approximately USD1.575 billion at closing, for use in pursuing other growth opportunities.

Basis the existing estimated equity values of ZEEL and SPNI, the indicative merger ratio would have been 61.25% in favour ofZEEL. However, with the proposed infusion of growth capital into SPNI, the resultant merger ratio is expected to result in 47.07% of the merged entity to be held by ZEEL shareholders and the balance 52.93% of the merged entity to be held by SPNI shareholders.

ZEEL & SPNI have entered into a non-binding term sheet to combine both companies' linear networks, digital assets, production operations and program libraries. The term sheet provides an exclusive period of 90 days during which ZEEL and SPNI will conduct mutual diligence and finalize definitive agreement(s). The merged entity will be a publicly listed company in India.

As part of the transaction, Mr. Punit Goenka will continue to be the Managing Director and CEO of the merged entity. Further, certain non-compete arrangements will be agreed upon between the promoters of ZEEL and the promoters of SPNI. According to the term sheet, the promoter family is free to increase its shareholding from the current - 4% to up to 20%, in a manner that is in accordance with applicable law. Majority of the Board of Directors of the merged entity will be nominated by Sony Group.

It is anticipated that the final transaction would be subject to completion of customary due diligence and execution of definitive agreements and required corporate, regulatory and thirdparty approvals, including the votes ofZEEL's shareholders.

ZEEL's strong expertise in content creation and its deep consumer connect established over the last 3 decades, coupled with SPNI's success across entertainment genres (including gaming and sports) will add significant value to the merged entity and its management team, thereby increasing shareholder value multifold.

Speaking on the development, Mr. R. Gopalan, Chairman, ZEE Entertainment Enterprises Ltd. said, "The Board of Directors at ZEEL have conducted a strategic review of the merger proposal between SPNI and ZEEL. 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 ZEEL. We have unanimously provided an in-principle approval to the proposal and have advised the management to initiate the due diligence process.

ZEEL continues to chart a strong growth trajectory and the Boardfirmly believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes. As per legal and regula tory guidelines, at the required stage, the proposal will be presented to the esteemed shareholders of ZEEL for their approval."

Under the guidance of the Board, the management of ZEEL, ably led by Mr. Punit Goenka, continues to steadily work towards achieving higher profitability in line with its set goals for the future. With this corporate development, the merged entity will result into an accelerated growth and a significant opportunity to create tremendous value for all its stakeholders.

Shares of Zee Entertainment Enterprises Ltd. was last trading in BSE at Rs. 255.65 as compared to the previous close of Rs. 255.3. The total number of shares traded during the day was 892256 in over 7506 trades.

The stock hit an intraday high of Rs. 261 and intraday low of 248.2. The net turnover during the day was Rs. 226673404.


Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Rattanindia backed Revolt opens EV dealership in Jaipur

SecureKloud Technologies Limited allots 2,84,000 shares on conversion of warrants

IEX to commence trade in Energy Saving Certificates under PAT Cycle- II on 26 October 2021

Glenmark becomes the first company to launch Remogliflozin + Vildagliptin + Metformin fixed dose combination

Godrej Properties in partnership with Dasra Launches report

EOS Data Analytics Partners up with Cambridge Technology in the agriculture and forestry sectors

Balu Forge Industries Ltd Board to consider Interim Dividend for FY22

Karda Constructions Ltd announces Q2FY22 results

ICRA Ltd reports consolidated PAT of Rs. 24.05 crore in Q2FY22

IndiGo partners Kotak Mahindra Bank for Ka-ching co-branded credit card

Apollo Hospitals announces free COVID vaccinations for children with Co-Morbidities

Bharat Petroleum to strengthen rural market connect with launch of new campaign by MAK Lubricants

ANG Lifesciences India Ltd board declares interim dividend of Rs. 1

Home First Finance Company India Limited - Highlights for Q2FY22

Advitiya Trade India Ltd to consider migration to main board of BSE

Quick Heal Technologies Ltd Q2FY22 consolidated PAT at Rs. 34.62 crore

ANG Life Sciences India Ltd H1FY22 consolidated PAT zooms to Rs. 33.77 crore

Jagran Prakashan Ltd posts consolidated net profit of Rs. 61.83 crore in Q2FY22

Choksi Imaging Ltd posts Rs. 46.46 lakhs net profit in Q2FY22

CEAT Ltd consolidated Q2FY22 net profit climbs QoQ to Rs. 41.98 crore

Sheetal Diamonds Ltd Q2FY22 loss at Rs. 40.44 lakhs

Orbit Exports Ltd Q2FY22 consolidated net profit higher at Rs. 4.54 crore

Indus Towers Ltd reports Rs. 1558.5 crore consolidated profit in Q2FY22

Sagar Productions Ltd posts Rs. 11.26 lakhs PAT in Q2 FY2021-22

Orient Cement Ltd reports Rs. 56.88 crore profit in Q2 FY22

Shreenath Investment Company Ltd Q2FY22 PAT slides to Rs. 5.61 lakhs

Home First Finance Company India Ltd posts Rs. 44.86 crore PAT in Q2 FY2021-22

Hardcastle and Waud Mfg Co. Ltd. Q2FY22 profit jumps to Rs. 69.41 lakhs

LKP Securities Ltd Q2FY22 consolidated net profit at Rs. 3.80 crore

Mangalam Organics Limited to double Camphor production capacity to 10,000 MTPA

Dwarikesh Sugar Industries Ltd - Q2FY22 Highlights

Kansai Nerolac Paints Ltd board declares interim dividend of Rs. 1.25

Mangalam Organics Ltd Q2FY22 consolidated PAT jumps to Rs. 22.31 crore

Mahan Industries Ltd posts loss in Q2FY22

Vardhman Special Steels Ltd Q2FY22 PAT drops QoQ to Rs. 24.29 crore

HDFC Asset Management Company Ltd posts Q2FY22 net profit of Rs. 344.38 crores

Tech Mahindra Ltd board declares special dividend of Rs. 15

TCS Named a Leader in IDC MarketScape for Worldwide Artificial Intelligence IT Services

SunEdison Infrastructure Ltd forms subsidiary

Rama Steel Tubes Limited wins Business Excellence Award of the Year

Maharashtra Scooters Ltd Q2FY22 PAT zooms to Rs. 135.70 crores

Tech Mahindra Ltd consolidated Q2FY22 net profit slips QoQ to Rs. 1338.7 crore

Bigbloc Construction Ltd Q2FY22 consolidated PAT at Rs. 3.14 crore

Kansai Nerolac Paints Ltd reports consolidated PAT of Rs. 92.01 crore, down QoQ, YoY

Shriram Asset Management Company Ltd Q2FY22 net profit at Rs. 19.54 lakhs

The Ugar Sugar Works Ltd starts sugar crushing for 2021-22 season

Aurionpro Solutions Ltd Q2FY22 consolidated PAT up at Rs. 19.57 crore

Dwarikesh Sugar Industries Ltd Q2 FY2021-22 net profit rises to Rs. 39.62 crore

Som Datt Finance Corporation Limited Q2FY22 net profit drops QoQ to Rs. 1.75 crore

GMDC posts consolidated PAT of Rs. 40.45 crore in Q2FY22


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020