Zee Entertainment Enterprises Limited (ZEEL) on Wednesday announced a merger with Sony Pictures Networks India (SPNI). According to the deal, Sony Pictures Entertainment will infuse USD 1.57 billion in the merged entity. Punit Goenka will continue as MD & CEO of the merged entity. The shareholders of ZEEL, meanwhile, will hold a 47.07 percent stake.
According to the statement, the majority of the board of directors of the merged entity will be nominated by the Sony Group. Both the firms have agreed to a binding exclusivity for a period of 90 days – during which definitive agreements will be conducted and finalized. The merged entity will be a publicly listed company.
Zee said in an exchange filing that the company and SPNI have entered into a non-binding term sheet to bring together their linear networks, digital assets, production operations, and program libraries.
“ZEEL continues to chart 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 synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes,” said Mr. R. Gopalan, Chairman, Zee Entertainment.
‘As per legal and regulatory guidelines, at the required stage, the proposal will be presented to the esteemed shareholders of ZEEL for their approval,” added Mr. Gopalan.
