Zee Entertainment- Sony India merger: Here are the top highlights of the mega-deal
NEW DELHI: The Board of Zee Entertainment has given in-principal approval to the merger between Zee Entertainment and Sony Pictures Networks India (SPNI) after several months of hectic deliberations. According to the deal, Sony Pictures Entertainment will infuse USD 1.575 billion in the merged entity. Punit Goenka will continue as MD & CEO of the merged entity.
While giving its in-principal nod to the deal, the ZEE Board said that it evaluated not only on financial parameters but also on the strategic value which the partner brings to the table.
The Board concluded that the "merger will be in the best interest of all the shareholders and stakeholders and it is in line with ZEEL’s strategy of achieving higher growth and profitability as a leading Media & Entertainment Company across South Asia.''
Post-merger between Zee Entertainment and Sony Pictures Networks India, 47.07% stake will be held by shareholders of Zee Entertainment, while Sony Pictures Networks will hold a 52.93% stake in the merged entity. The merged entity will be a publicly listed company.
Both companies have agreed to combine linear networks, digital assets, production operations and program libraries as part of the deal. Further, certain non-compete arrangements will be agreed upon between the promoters of ZEEL and the promoters of SPNI.
The majority of the Board of Directors of the merged entity will be nominated by Sony Group, as per the deal.