According to the proposed merger, Sony Pictures will have 52.93 percent stake in the new company formed after the merger. At the same time, the new company will be the country’s largest entertainment network.
Important things related to Zee-Sony merger
The merger of Zee Entertainment Enterprises and Sony Pictures Networks has reached its final stage. The three-month deadline required to complete this deal, which happened on September 22, ends on December 21. In such a situation, it is likely that in the next few days, the companies will finalize the merger. Know some special things related to this deal
Country’s largest entertainment network after merger
According to experts, after the merger, the new company will become the largest network in the entertainment segment in the country, with 26 percent of the audience. With this, the Hindi general entertainment segment will have more than half the share, which is the largest segment of TV in terms of viewership. After this, the new company will also have 63 percent stake in Hindi cinema.
The company will run the board
According to the information, after the merger, the board will run the new company and the role of Sony Pictures will be important in this too. Zee CEO Puneet Goenka will continue to be the CEO of the merged company but he will be the sole executive of Zee on the board. In the board of 9 members, more than half the members i.e. 5 members will be from Sony Pictures, while the number of independent directors can be up to 3.
Zee promoters can increase stake through open market
In the deal, the promoters of Zee can increase their stake from the current 4 percent to 20 percent. Amidst the concern of investors over this decision, G made it clear that this process will not affect the interests of any other shareholder. The process of purchase of shares will be done on the basis of market price from the open market. According to the proposed merger, Sony Pictures will have 52.93 percent stake in the new company formed after the merger. At the same time, Zee will have 47.07 percent stake.
Invesco raises questions on raising stake in Zee Promoter
With the deal reaching the final stages, Zee’s largest investor Invesco has raised questions over Zee’s stake increase in the new company. According to sources, Invesco has raised questions on the promoters holding 4 percent stake to increase their stake to 20 percent. Along with this, Invesco has demanded to convene an EGM to answer questions on the deal and has said that failing this, it will take the matter to court. Invesco has demanded the removal of the existing directors of Zee and the appointment of new ones. Invesco and Global China Fund together hold 17.88 per cent stake in Zee.
Zee Entertainment stock doubles since September
The deal was announced on September 22, however, with the beginning of September, there was an increase in the stock. The stock was at the level of 171 at the beginning of September. Today the stock has reached the level of 349, that is, the stock has gained more than 100 percent during this period.