After the incorporation, Sony will finance $1.57 billion and will be the majority stockholder with a 52.93% commanding stake. The shareholders of Zee Entertainment Enterprises Limited, meanwhile, will continue a 47.07 percent stake.
Zee Entertainment Enterprises Limited (ZEEL) on Wednesday declared a merger with Sony Pictures Networks India (SPNI). The merger was approved by the ZEEL board and said that Puneet Goenka will continue as the MD and CEO of the centralized entity.
The ZEEL council said in a report that it not only estimated financial parameters, “but also the strategic value which the partner brings to the table”.
It said that both the organizations have entered into a non-binding agreement and combine their linear networks, digital assets, production operations, and program archives.
The united entity will still be a listed company in India, the ZEEL board continued.
The term sheet gives a term of 90 days, during which both firms will conduct mutual diligence and conclude definitive agreements, Zee told in an exchange filing. It continued that the merger proposal would be presented to stockholders for their approval.
Zee, which has a presence in television broadcasting and digital media with brands such as Zee TV, has been under oppression from top investors for a management reshuffle, including the exit of CEO Punit Goenka from the board.