According to a regulatory filing by the media company to the stock exchanges on Wednesday, 22 September, Zee Entertainment signed a merger agreement with Sony Pictures Networks India Pvt Ltd. The Board of Directors of Zee Entertainment unanimously approved the merger between Sony Pictures Networks India and Zee Entertainment. Enterprises Limited (ZEEL) in the board meeting held today. Mr. Puneet Goenka will continue to be the Managing Director (MD) and CEO of the merged entity.
The promoters of Sony India will have the right to appoint a majority of directors in the merged company. According to the statement, Zee Entertainment will hold 47.07 per cent stake in the merged company, while Sony India will hold 52.93 per cent. Both the firms have agreed to a binding exclusivity for a period of 90 days.
“ZEEL is on a strong growth trajectory and the Board firmly believes that this merger will further benefit ZEEL. The value of the merged entity and the immense synergy drawn between the two groups will not only spur business growth, but will also help shareholders leverage its future successes,” said Mr. R. Gopalan said.
“As per the legal and regulatory guidelines, at the required stage, the proposal will be submitted to the esteemed shareholders of ZEEL for their approval,” said Mr. Gopalan.