The Zee Entertainment Enterprises (ZEE) stock is expected to continue to build on the gains clocked after the seemingly unexpected move to merge with Sony Pictures.
What seems to the outside eye like a dramatic turn of events has been orchestrated with all stakeholders aligning – largest institutional shareholder Invesco Oppenheimer with 17 percent stake, the Zee promoters who hold less than 5 percent stake in the company and Sony Pictures, which has been in negotiation for a deal for the past two years.
“This is now a foregone conclusion because all parties have been taken care off,” said a person in the know of the deal.
Zee Entertainment signed a merger deal with Sony Pictures Networks India Private Limited, the company said in an exchange filing. According to the deal, Sony Pictures Entertainment will infuse $1.575 billion in the merged entity.
The announcement comes a week after Zee Entertainment saw an open call for the ouster of promoters and the incumbent management led by Punit Goenka.
Read | Like father, unlike son: Punit Goenka’s bumpy ride at the Zee Group
Proxy advisory firm Ingovern also raised concern over the role of the audit committee headed by Punit Goenka, MD and CEO of Zee Entertainment after its large investors — Invesco Developing Markets Fund and OFI Global China Fund — had called his removal.
ZEE share prices added over 2 percent intraday on September 20 after BlackRock Inc had picked more than 3.01 lakh equity shares in the company.
BlackRock Inc. (on behalf of discretionary management clients) picked more than 3.01 lakh equity shares in the company via open market transaction, increasing shareholding to 5.01 percent from 4.98 percent earlier.
The ZEE stock was trading at Rs 260.35, up Rs 5.05, or 1.98 percent. It has touched an intraday high of Rs 264.75 and an intraday low of Rs 250.35.Internet Explorer Channel Network