New Delhi, Sep 22,2021: Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday said that its board has given in-principle approval for the merger between Sony Pictures Networks India (SPNI) and ZEEL.
As per the deal, Sony Pictures Networks will hold a majority stake in the merged entity and infuse US$ 1.75 billion.
“The shareholders of SPNI, will hold a majority stake in the merged entity. The shareholders of SPNI will also infuse growth capital into SPNI as part of the merger such that SPNI has approximately USD1.575 billion at closing, for use in pursuing other growth opportunities,” Zee Entertainment said in BSE filing.
Post merger, Zee Entertainment stakeholders would hold 47.07 per cent equity stake in the merged entity while Sony Pictures Networks will hold the balance 52.93 per cent in the merged entity.
As per the term sheet of the merger, Punit Goenka will continue to be the Managing Director and CEO of the merged entity. Further, certain non-compete arrangements will be agreed upon between the promoters of ZEEL and the promoters of SPNI.
