Zee Entertainment will merge with Sony Pictures, includes digital and TV businesses

Zee Entertainment Enterprises (ZEEL) on Wednesday announced that its Board of Directors, present and voting at its Board meeting held on 21 September 2021, unanimously gave in-principle approval for the merger between Sony Pictures Networks India (SPNI) and ZEEL. Sony will invest Rs 11,605.94 crore in the merged company. Puneet Goenka will continue as the Managing Director and CEO of the merged company. After the merger, Zee Entertainment will hold a 47.07 percent stake. Sony Pictures will hold 52.93 percent.

The TV business, digital assets, production operations, and program libraries of the two companies will also be merged. At the same time, an exclusive non-binding term sheet has been signed between ZEEL and SPNI. 47.07% will be held by ZEEL shareholders and the remaining 52.93% will be held by the merged entity SPNI shareholders. The due diligence of the deal will be completed in the next 90 days. The existing promoter family Zee will have the option to increase its shareholding from 4 percent to 20 percent. Sony Group will have the right to nominate most of the directors on the board.

The board has said that the merger will not harm the interests of the shareholders and the stakeholders. Sony Pictures Entertainment will invest $1.575 billion after the merger. After the merger, Sony Entertainment will be the majority shareholder.

the share will change like this

In the current situation, the shareholding of ZEEL’s shareholders will be 61.25%
There will be a change in stake after an investment of $1.575 billion.
After this investment, the share of ZEEL’s investors will be around 47.07%.
Shareholders of Sony Pictures estimated to be 52.93%