ZEEL-SPNI merger Photograph:( Zee News Network )
Punit Goenka will continue to be the CEO and MD of the merged entity.
Board of Directors of ZEE Entertainment Enterprises Limited (ZEEL) on Tuesday (September 21) unanimously gave in-principle approval for merger of ZEEL and Sony Pictures Networks India (SPNI).
"The Board of Directors at ZEEL have conducted a strategic review of the merger proposal between SPNI and ZEEL. As a Board that encompasses a blend of highly accomplished professionals having rich expertise across varied sectors, we always keep in mind the best interests of all the shareholders and ZEEL. We have unanimously provided an in-principle approval to the proposal and have advised the management to initiate the due diligence process...," said R Gopalan, Chairman, ZEE Entertainment Enterprises Ltd
Shareholders of SPNI will hold a majority stake in the merged entity. The merged entity will be a publicly listed company in India.
Based on the existing estimated equity values of ZEEL and SPNI, the indicative merger ratio would have been 61.25% in favour of ZEEL. However, with the proposed infusion of growth capital into SPNI, the resultant merger ratio is expected to result in 47.07% of the merged entity to be held by ZEEL shareholders and the balance 52.93% of the merged entity to be held by SPNI shareholders
ZEEL & SPNI have entered into a non-binding term sheet to combine both companies' linear networks, digital assets, production operations and program libraries. The term sheet provides an exclusive period of 90 days during which ZEEL and SPNI will conduct mutual diligence and finalize definitive agreements.
Punit Goenka will continue to be the Managing Director and CEO of the merged entity. Sony Group will nominate majority of the Board of Directors.
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