ZEE-Sony merger receives approval from BSE, NSE

Indian stock exchanges BSE and NSE on Friday approved the merger of Zee Entertainment Enterprises Ltd (ZEEL) with Sony Pictures Networks India.

"The approval from the stock exchanges marks a firm and positive step in the overall merger approval process. The approvals permit the company to proceed with the next steps in the overall merger process," Zee said in a statement.

Last year in December, Sony and ZEEL signed definitive agreements for the merger of ZEEL into Sony Pictures Networks India (SPNI) following the conclusion of an exclusive negotiation period during which both parties conducted mutual due diligence.

At that time Invesco along with OFI Global China Fund LLC, which together hold about a 17.9 per cent stake in ZEEL, had opposed the deal. When the merger deal was announced in September 2021, the two networks had stated that Sony would invest $1.575 billion and hold a 52.93 per cent stake in the merged entity, while Zee will have the remaining 47.07 per cent.

ZEEL's chief executive Punit Goenka will lead the combined company as its Managing Director & CEO.

The merged entity is touted to become India's second-largest entertainment network by revenue with 75 TV channels and two video streaming services -- ZEE5 and Sony LIV. It will also house two film studios -- Zee Studios and Sony Pictures Films India and a digital content studio (Studio NXT).

When it is completed, Sony Pictures Entertainment Inc will indirectly hold a majority of 50.86 per cent of the combined company and the promoters (founders) of ZEEL will hold 3.99 per cent, while the other ZEEL shareholders will hold a 45.15 per cent stake.