Zee-Sony Merger - Zee's Shareholders’ Activism To Be A Battle In The Near Term: ICICI Direct
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ICICI Direct Report
Zee Entertainment Enterprises Ltd. and Sony Pictures Networks India announced an exclusive, non-binding term sheet to merge both companies.
The merged entity will have 75 channels, two OTT platforms and ~25% plus TV viewership market share.
The companies will have 90 days for due diligence with expected completion timeline of six to eight months, post statutory approvals.
The resultant merger ratio is expected be 47.07% of the merged entity to be held by Zee Entertainment's shareholder and 52.93% by Sony.
The company also said that indicative merger ratio would have been 61.25% in favour of Zee shareholders, albeit it changed with proposed infusion of growth capital by Sony .
This implies, combined entity was valued at Rs 50,207 crore.
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