According to a regulatory filing by Zee Entertainment to the stock markets on Wednesday, September 22, the media business inked a merger agreement with Sony Pictures Networks India Private Limited. In a board meeting today, Zee Entertainment’s board of directors overwhelmingly authorized the merger between Sony Pictures Networks India and Zee Entertainment Enterprises Limited (ZEEL).
Mr. Punit Goenka will remain the combined entity’s Managing Director (MD) and CEO. Sony India’s promoters will have the power to appoint the majority of the amalgamated company’s directors.
Zee Entertainment will hold 47.07 percent, while Sony India will hold a majority stake of 52.93 percent in the merged company, 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.
”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.
Zee Entertainment and Sony India have entered into a non-binding term sheet to combine the linear networks, production operations, digital assets, and program libraries of both companies.