ZEEL-Sony Pictures merger deal gets board approval; Sony to take 50.86% stake in the merged entity
The merger between the two entities was announced on September 22. Zee and Sony had agreed to take a 90-day period to conduct due diligence for the process.
In a big development, the board of Zee Entertainment has given a go-ahead to the ZEEL-Sony Pictures merger deal. The decision comes just on the day when the 90-day exclusive period on the decision was expiring on Wednesday.
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As per the decision made in the board, in the first stage, shares of Sony will be split and once the merger process is finalised, Sony will have a 50.86% stake in the merged entity. The merger between the two entities was announced on September 22. Zee and Sony had agreed to take a 90-day period to conduct due diligence for the process. The period came to a close on December 21.
बोर्ड से SONY पिक्चर्स के साथ मर्जर को मंजूरी
पहले SONY के शेयरों का विभाजन होगा
मर्जर के बाद SONY का हिस्सा 50.86% होगा#SonyZeeMerger | @AnilSinghvi_ | @deepdbhandari pic.twitter.com/XT8s3torPc
— Zee Business (@ZeeBusiness) December 22, 2021
"Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises Ltd. (ZEEL) on Wednesday announced that they have signed definitive agreements to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations, and program libraries," as per a joint statement from the two companies.
मर्जर के बाद Essel का हिस्सा 3.99% होगा
मर्जर के बाद पुनीत गोयनका MD, CEO बने रहेंगे#SonyZeeMerger पर क्या है संजीव भसीन की राय, जानिए यहाँ...@sanjiv_bhasin #Zeel pic.twitter.com/bdMP6mcv8c
— Zee Business (@ZeeBusiness) December 22, 2021
The agreements follow the conclusion of an exclusive negotiation period during which ZEEL and SPNI conducted mutual due diligence. After closing, the new combined company will be publicly listed in India. The closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals, it said.
Under the terms of the definitive agreements, SPNI will have a cash balance of $1.5 billion (assuming an INR: USD exchange rate of 75:1) at closing, including through infusion by the current shareholders of SPNI and the promoters (founders) of ZEEL, to enable the combined company to drive sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities.
Punit Goenka will lead the combined company as its Managing Director & CEO. 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. On closing, Singh will assume a broader executive position at SPE as Chairman, Sony Pictures India (a division of SPE) reporting to Ravi Ahuja, SPE’s Chairman of Global Television Studios and SPE Corporate Development.
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