The Board of Directors of ZEE Entertainment Enterprises Limited (ZEEL) has unanimously approved the merger of the company with Sony Pictures Networks India (SPNI). As a part of the merger, shareholders of SPNI will also infuse growth capital into SPNI, which will make them the majority stakeholder in the merged entity. The merged entity will be listed on the Indian stock exchanges.
About the deal:
- Zee Entertainment will hold 47.07 per cent stake, while Sony India will hold a 52.93 per cent stake in the combined company.
- Following the merger, Sony India will have the right to appoint the majority of directors to the merged company.
- Puneet Goenka, the CEO of Zee Entertainment, will be the MD and CEO of the merged entity for a period of 5 years.
Important takeaways for all competitive exams: