Zee-Sony merger in final stages of stitching up

Zee-Sony merger in final stages of stitching up

Shares of Zee Entertainment Enterprises were up 8% at Rs 336.20 on the BSE in Wednesday’s intra-day trade, gaining 13% in the past two trading days, after Punit Goenka, MD and CEO of Zee said that merger talks between the company and Sony Pictures Networks India (SPNI) are in final stages of stitching up.
The stock of the broadcasting & cable TV operator inched towards its 52-week high of Rs 362.85, touched on September 23, 2021. The counter saw huge trading volumes today with a combined 21.2 million equity shares having changed hands on the NSE and BSE.

Zee Entertainment Enterprises and SPNI had announced a merger in September of their India businesses with Sony holding the majority stake. About 53 per cent of the merged entity would be owned by Sony and the rest by Zee’s holders, according to the non-binding agreement signed in September.
While announcing September quarter (Q2) results on November 11, 2021, the company’s management stated that the due diligence process for the Zee and SPNI merger is progressing well.
The successful competition of this, along with shareholder approval for the deal, would be the key near-term triggers for a re-rating.

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