Zee Entertainment Enterprises (ZEE) shares were locked at 10 percent upper circuit in early trade on September 22 after the company signed a merger deal with Sony Pictures India.
“The Board of Directors of ZEEL at its meeting held on September 22, 2021, has approved the execution of a non-binding term sheet (Termsheet) with Sony Pictures Networks India Private Limited (Sony India), in relation to a potential transaction involving a composite scheme of arrangement for the merger of the Company and Sony India and infusion of growth capital by the promoters of Sony India into Sony India as part of the merger,” the company said in a press release.
Post merger, 47.07 percent stake will be held by shareholders of Zee Entertainment, while Sony Pictures Networks will hold a 52.93 percent stake in the merged entity.
The company said that Punit Goenka will be MD & CEO of the merged company for five years.
The board of the merged company will manage and control the business and affairs of the merged company and its subsidiaries.
The company and Sony India have agreed to a binding exclusivity for a period of 90 days from the date of the Termsheet.
At 09:17 hrs, Zee Entertainment Enterprises was quoting at Rs 281.20, up Rs 25.55, or 9.99 percent on the BSE.
There were pending buy orders of 3,698,267 shares, with no sellers available.
The share touched a 52-week high of Rs 295.15 and a 52-week low of Rs 166.80 on 15 September 2021 and 23 August 2021, respectively.
Currently, it is trading 4.73 percent below its 52-week high and 68.59 percent above its 52-week low.Internet Explorer Channel Network