Zee Entertainment announces merger with Sony Pictures Networks India
Zee Entertainment Enterprises Limited (ZEEL) on Wednesday announced a merger with Sony Pictures Networks India (SPNI). After the merger, Sony will invest $1.57 billion and will be the majority shareholder with 52.93% controlling stake. The shareholders of ZEEL, meanwhile, will hold 47.07 per cent stake.
The merger was approverd by ZEEL board, and said that which Puneet Goenka will remain the Managing Director and CEO of the merged entity.
The ZEEL board said in a statement that it not only evaluated financial parametres, "but also the strategic value which the partner brings to the table".
It said that both the companies have entered into non-binding agreement and combine their linear networks, digital assets, production operations and program libraries.
The merged entity will still be a listed company in India, the ZEEL board added.
The term sheet gives a period of 90 days, during which both firms will conduct mutual diligence and finalize definitive agreements, Zee said in an exchange filing.
It added that the merger proposal would be presented to shareholders for their approval.
Zee, which has a presence in television broadcasting and digital media with brands such as Zee TV, has been under pressure from top investors for a management reshuffle, including the exit of CEO Punit Goenka from the board.