The Board of Directors of ZEE Entertainment Enterprises Limited (ZEEL) has unanimously approved the merger of the company with Sony Pictures Networks India (SPNI). As a part of the merger, shareholders of SPNI will also infuse growth capital into SPNI, which will make them the majority stakeholder in the merged entity. The merged entity will be listed on the Indian stock exchanges.SPNI will also inject growth capital into SPNI as part of the merger, giving it a total value of US$ 1.575 billion at closure, which it can utilise to pursue further development opportunities.
About the deal:
- Zee Entertainment will hold 47.07 percent, while Sony India will hold a 52.93 percent stake in the merged company. Both the companies have agreed to a binding exclusivity for 90 days.
- Following the merger, Sony India will have the right to appoint the majority of directors to the merged company.
- Puneet Goenka, the CEO of Zee Entertainment, will be the MD and CEO of the merged entity for a period of 5 years.