ZEEL-Sony Merger: NCLT approves merger deal, dismisses all objections
ZEEL- Sony merger deal: Post-development, the stock of Zee Entertainment Enterprises (ZEEL) jumped 15 per cent to Rs 278.40 on the BSE.
ZEEL- SONY merger deal: The mega merger deal between Zee Entertainment Enterprises Limited (ZEEL) and Sony Pictures Network India (SPNI) received the approval of National Company Law Tribunal (NCLT) on Thursday, August 10. Notably, the NCLT dismissed all objections related to the deal.
According to sources, the detailed copy of the order will be uploaded on Friday.
Post-development, the stock of Zee Entertainment Enterprises (ZEEL) jumped 15 per cent to Rs 278.40 on the BSE.
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The merger of Zee and Sony will create the country's largest entertainment company. The standalone revenue of the merged entity will be around $2 billion.
"Zee, having faced legal hurdles in finalising the merger, can now breathe a sigh of relief as the deal progresses. The merger with Sony is expected to benefit various stakeholders, including the companies themselves by enhancing their competitive positions, shareholders through potential increased value, and viewers by potentially offering a broader range of content. The combined strengths may lead to synergies that can foster growth and efficiency in their operations," said Sonam Chandwani, Managing Partner, KS Legal & Associates.
Zee to continue investing in TV
India will remain a big market for TV and digital in the near future, and Zee, as a company, will continue to grow its digital presence and invest in linear TV along with it.
Sony group to nominate Board Director
The TV businesses, digital assets, production operations and program libraries of both ZEEL and Sony will also be merged. In this regard, an exclusive non-binding agreement has been signed between ZEEL and SPNI.
The existing promoter family — ZEEL — will have an option to increase its shareholding from 4 per cent to 20 per cent, while Sony Group will have the right to nominate most of the directors on the board.