Zee Entertainment-Sony Pictures merger
Zeel-Sony Merger: The merger between Zee Entertainment-Sony Pictures Networks India has been announced. The board of ZEEL has given in-principle approval to the merger. Sony will invest Rs 11,605.94 crore in the company formed after the merger. Puneet Goenka will continue to be the Managing Director (MD) and CEO of the merged company. After the merger, Zee Entertainment will hold 47.07 per cent stake. Sony Pictures will hold 52.93 per cent stake. The merger company will also be listed in the stock market.
The TV business, digital assets, production operations and program library of both the companies will also be merged. An exclusive non-binding term sheet has been signed between ZEEL and SPNI. The due diligence of the deal will be completed in the next 90 days. The existing promoter family Zee will have the option to increase its shareholding from 4 per cent to 20 per cent. Sony Group will have the right to nominate most of the directors on the board.
Zee Entertainment-Sony Pictures Networks India merger announced
Zee Entertainment’s board gives in-principle approval for merger
Puneet Goenka will continue as MD & CEO even after the merger
– Sony Pictures Entertainment to invest $157.5 Cr after merger
Investment money will be used for growth
Sony Entertainment will be the majority shareholder after the merger
– Non binding termsheet signed between both parties
– Both the parties will do due diligence within 90 days
– Even after the merger, the company will be listed in the Indian stock market.
Non-compete agreement will also be signed between both the parties.