ZEE-Sony Merger: The merger deal of Zee Entertainment Enterprises Limited (ZEEL) and Sony Pictures Networks India (SPNI) has gone a step further.
ZEE-Sony Merger: The merger deal of Zee Entertainment Enterprises Limited (ZEEL) and Sony Pictures Networks India (SPNI) has gone a step further. The GK board has approved the deal. The companies announced on Wednesday (December 22) that they have signed a definitive agreement on the merger deal between Zee and Sony Pictures Networks, under which their linear network, digital assets, production operations and program library will be integrated.
The MD and CEO of the merged company will be Puneet Goenka. At the same time, the board of directors of the new company will be appointed by Sony Group and it will also include NP Singh, MD CEO of Sony Pictures Networks. After the completion of the merger process, the new combined company will be listed in the market. The board of GK has given approval for this deal before the completion of 90 days due diligence.
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Sony will hold majority stake
Sony Pictures Networks is an indirect subsidiary of Sony Pictures Entertainment (SPE). Under the deal between Zee and Sony, SPE will pay non-compete fees to the promoters (founders) of Zee Entertainment through a subsidiary to be used as primary equity capital in Sony Pictures Networks. After the completion of the merger process, Sony Pictures Entertainment will indirectly hold 50.86 per cent stake in the new company, while Zee promoters will hold 3.99 per cent and Zee Entertainment will hold 45.15 per cent.
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Promoters can raise their stake up to 20 percent
The deal is yet to be approved by the regulator, shareholders and third parties. After the board cleared the deal, Zee Entertainment MD and CEO Puneet Goenka described the partnership between the two big media and entertainment companies as a big step for the next generation of entertainment. Goenka said that the two companies together will now provide comprehensive entertainment. Explain that under the Definitive Agreement, the promoters of Zee can increase their stake in the merged company to 20 percent.
(Article: Harshita Tyagi)
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