The board of directors at Zee Entertainment Enterprises has given its approval for the merger between Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Limited (ZEEL). Punit Goenka will continue to provide services to the merged company as he currently provides to ZEEL and will be the initial Managing Director and CEO of the merged entity for 5 years on terms and conditions.
The principal terms of the Term sheet are, the indicative initial merger ratio is expected to result in the shareholders of the company holding approximately 47.07% in the merged company and the promoters of Sony India holding about 52.93% in the merged company (post-infusion of growth capital into Sony India as part of the merger such that Sony India has a cash balance of approximately $1.575B).
The promoters of Sony India will have the right to appoint majority directors on the merged company’s board. The merged entity’s board will manage and control the business and affairs of the merged company and its subsidiaries.
As per the company statement, the deal will see both ZEEL and SPNI combining their linear networks, digital assets, production operations, and program libraries. As part of the deal, ZEEL and SPNI will conduct mutual diligence and finalize definitive agreements during an exclusive period of 90 days.