The board of directors of entertainment major Zee Entertainment Enterprises (ZEE) has approved the binding agreement with Sony Pictures Networks India (SPN), a subsidiary of Sony Pictures Entertainment.
The merger between the two entities was announced on September 22. Zee and Sony had said that the companies will take 90-day period to conduct due diligence for the process. The period came to a close on December 21.
Board
While announcing the merger, Zee had said that SPNI has agreed to the appointment of Punit Goenka as MD and CEO of the merged entity, which was as an integral part of the deal.
The majority of the board of directors of the combined company will be nominated by the Sony Group and will include the current SPNI Managing Director and CEO, N.P. Singh.
Shareholding Pattern
As a part of the deal, Sony will own 50.86 percent of the merged entity, while the promoter group Essel will own a 3.99 percent stake. The public shareholding will stand at 45.15 percent.
Zee currently owns 96.05 crore shares, post-merger their holding will rise to 173.63 crores. The promoters are expected to get over Rs 1,000 crore from the non-compete.
The promoters will buy over 3.67 shares in the merged entity at Rs 300 per share to maintain the 3.99 percent stake.
Advisor of the deal
Sony Pictures Network was advised on the this transaction by the likes of Morgan Stanley, KPMG, Shardul Amarchand Managaldas.
Zee was advised by KPMG, JP Morgan, Trilegal, and Boston.
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