Zee Entertainment Enterprises Ltd., India’s largest listed TV network, approved a merger agreement with a local subsidiary of Sony Group Inc. because of complex board and court disputes between Zee’s founder and its largest shareholder.
Sony Pictures Networks India Pvt. According to an exchange document submitted by Zee on Wednesday, it will own 50.86% of the shares of the combined entity, and Zee’s current holding company Essel will own 3.99% of the shares. As part of the final agreement, public shareholders will own the remaining 45.15%. According to the document, Zee’s board approved the appointment of Punit Goenka, the son of founder Subhash Chandra, as the CEO of the newly formed entity.
This transaction will help expand Sony’s media business in the world’s second most populous country, where Zee holds 17% of the media and entertainment market. The transaction announcement was made three months after the announcement of the non-binding agreement between Zee and Sony on September 22, which escalated the acquisition battle between the Chandra family and the Atlanta-based Invesco Development Markets Fund, which owns 18 % Of shares, this is the largest shareholding. The latest development shows that Sony and Chandra are redoubled their efforts to complete the transaction. Although Chandra is eager to retain his family’s influence on the debt-ridden media company he founded in 1992, the acquisition of Zee will allow Sony to reach its global audience of more than 1.3 billion, as well as a huge local Indian language dating back to the 1990s Content library. As of the end of March, Zee’s own streaming media platform is also a leader in local players, with close to 73 million monthly active users.
Complete News Source : Hindustan Times
