ZEE equity shareholders approve proposed merger with Sony

As per a National Company Law Tribunal (NCLT), Mumbai Bench order, dated 24 August 2022, the company convened the meeting of its equity shareholders on 14 October to seek approval for the proposed merger which was supported by 99.99% of ZEEL’s equity shareholders. The merger is now subject to applicable regulatory and other approvals.

“On behalf of all the Board members and management of ZEEL, I would like to thank the equity shareholders of the Company for recognising the value-accretive opportunities the proposed merger will deliver to all stakeholders,” Punit Goenka, managing director and chief executive officer, ZEE Entertainment Enterprises Ltd. said in a statement.

Last week, the Competition Commission of India (CCI) had approved the Zee Sony merger, accepting the modifications proposed by the companies to the deal they had announced last December. Zee had also received approvals from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in July.

In December 2021, the two companies said in a joint statement that the Japanese company would own a 50.86% stake in the merged entity, while Zee Entertainment’s promoters would own 3.99%. Zee Entertainment’s public shareholders will own the remaining 45.15%. As part of the deal, Zee founder Subhash Chandra’s son, Punit Goenka, will continue to be the combined company’s managing director and chief executive. In addition, Sony will pay a non-compete fee to promoters of Zee, which they will use to infuse primary equity capital into SPN, allowing them to buy shares of the company. The shares would eventually equal approximately 2.11% of the combined company’s shares.

The statement had then said most combined company directors will be nominated by Sony and will include current SPN managing director and CEO N.P. Singh. He will also assume a broader executive position at Sony Pictures Entertainment Inc. (SPE) as chairman of Sony Pictures India. Singh will report to Ravi Ahuja, Sony Pictures Entertainment’s chairman of Global Television Studios.