Zee-Sony Merger: Zee Shares Pare Losses After Tumbling Over 2.5% on Wednesday

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Zee-Sony Merger: Zee Shares Pare Losses After Tumbling Over 2.5% on Wednesday

By Malvika Gurung

Investing.com -- Shares of the media conglomerate Zee Entertainment (NS: ZEE ) Enterprises climbed 0.4% at 11:45 am, after tumbling over 2.5% in early deals on Wednesday.

This was amid heavy volumes of profit bookings after the media company finalised a merger with Sony Pictures Networks India Private Limited (SPNI).

According to the signed definitive agreement, Zee will merge with SPN, and the newly merged company will be publicly listed on the Indian exchanges. The promoters of Zee will receive Rs 1,101 crore, as per an agreement, which it will use to purchase 3.67 crore shares in the merged company, priced at Rs 300 apiece.

Furthermore, the promoters of Zee will hold a 3.99% stake in the merged entity, while its shareholders will hold a 45.15% stake in the company. Sony will hold a 50.86% stake in the company, and the rest of the stake will be held by public shareholders.

The merged entity will be led by Punit Goenka as its managing director and CEO, while the Sony Group will select the majority of the merged entity’s board of directors, including the MD & CEO of SPN, NP Singh.

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