ZEEL-Sony MEGA Merger Deal: Punit Goenka to continue as MD and CEO of merged entity
Punit Goenka will continue as the Managing Director (MD) and Chief Executive Officer (CEO). The Board of Directors of ZEE Entertainment Enterprises (ZEEL) unanimously provided an in-principal approval for the merger between ZEEL and Sony Pictures Network India (SPNI).
Punit Goenka will continue as the Managing Director (MD) and Chief Executive Officer (CEO). The Board of Directors of ZEE Entertainment Enterprises (ZEEL) unanimously provided an in-principal approval for the merger between ZEEL and Sony Pictures Network India (SPNI).
“It is an integral part of the proposed merger that Punit Goenka continues to be the Managing Director and CEO of the merged entity,” The company said in its statement.
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ZEEL-Sony MEGA Merger Deal - Top points everyone needs to know - Check details here“Further, certain non-compete arrangements will be agreed upon between the promoters of ZEEL and the promoters of SPNI. According to the term sheet, the promoter family is free to increase its shareholding from the current ~4 to up to 20 per cent, in the normal course of business. Majority of the Board of Directors of the merged entity will be nominated by Sony Group,” the statement said.
The parent company of SPNI, Sony Pictures Entertainment will also infuse USD 1.575 billion at closing, for use and pursuing other growth opportunities. Basis the existing estimated equity values of ZEEL and SPNI, the indicative merger ratio would have been 61.25% in favour of ZEEL.
The resultant merger ratio is expected to be 47.07% held by ZEEL shareholders and the balance 52.93% held by SPNI shareholders. The merger between ZEEL and SPNI is considered to be a win-win deal as the both the companies will now be able to share the content, distribution and enjoy each other’s digital space.
The merger is in line with ZEEL’s strategy of achieving higher growth and profitability as a leading Media & Entertainment Company across South Asia. The Board has authorized the management of ZEEL to activate the required due diligence process, the company said in a statement on Tuesday.
(Disclaimer: Zee Entertainment is not our sister concern/group company. Though our names sound similar but our company is owned by Zee Media Corporation, which is a different group.)
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