Categories: Agreements

NSE and BSE approve of Zee’s merger with Sony Pictures

The BSE and NSE stock exchanges have given Zee Entertainment their approval for Zee Entertainment’s proposed merger with Sony Pictures Networks India. According to a statement by Zee Entertainment Enterprises Ltd., both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have accepted the planned merger with Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India). The stock exchanges’ approval is a decisive and encouraging step in the merger approval process as a whole.

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KEY POINTS:

The clearances allow ZEEL to move forward with the general merger process’ upcoming steps, it was said.
The composite plan of organisation must still receive all necessary governmental and other approvals, nevertheless.
Following the conclusion of an exclusive negotiation period during which both parties engaged in reciprocal due diligence, the two media organisations had signed final agreements for the merger of ZEEL with SPNI in December of the previous year.
According to the announcement, the acquisition is subject to a number of standard closing conditions, including shareholder, regulatory, and third-party clearances.

More About the Agreement:

The promoter founders of ZEEL will receive a non-compete fee from Sony Pictures Entertainment Inc. as part of the arrangement.
They will utilise this money to inject primary equity capital into SPNI.
This would provide them the right to purchase SPNI shares, which eventually would represent roughly 2.11 percent of the combined company’s shares on a post-closing basis.
Punit Goenka, the CEO of ZEEL, will serve as the combined company’s Managing Director & CEO. The Sony Group will nominate the majority of the board of directors candidates for the combined company.