Zee Entertainment-Sony India Agree On Merger: ICICI Securities' Analysis
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ICICI Securities Report
Zee Entertainment Enterprises Ltd. and Sony Pictures India Ltd. have entered into a non-binding agreement to merge their operations in India with post-merger stake of 47% for existing Zee Entertainment shareholders and 53% for Sony; it would also include Sony infusing cash of $1.575 billion.
Zee Entertainment's Managing Director and Chief Executive Officer Punit Goenka will retain the same position in the merged entity and Zee will retain one board seat in it with majority of the board members to be nominated by Sony.
However, the extraordinary general meeting called by Invesco, the company's largest shareholder, to remove Mr. Goenka from the board remains a risk for the deal.
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