Zee Shares Jump 4% Higher After This Update On Zee-Sony Merger; Check Details Here

The share price of Zee Entertainment Enterprises Ltd (ZEEL) gained as much as 6% at one point in the intraday trading on Thursday (December 21) after the company in an exchange filing on Wednesday gave an update on the Zee Sony merger. Sony and Zee have decided to enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) to discuss the extension of the date to make the merger scheme effective by a reasonable period.

The company said, "The Company is now in receipt of a communication from Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited) and Bangla Entertainment Private Limited (BEPL) that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered amongst the Parties, the Company, CMEPL, and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time."

Zee shares traded 3.91% higher at Rs 261.65 per share at 10:38 am IST on Thursday. At this price, Zee Entertainment Enterprises has a market capitalization of Rs 25,131.99 crore.

On December 17, ZEEL asked Sony Group companies CMEPL and Bangla Entertainment (BEPL) to extend the date.
One should note that the effective date for completion of the merger has already been extended once in the past. The deal to create a $10-billion media and entertainment entity was initially announced two years ago, however, due to regulatory and other uncertainties the deal has not materialized yet.

Earlier this year, the Mumbai bench of the National Company Law Tribunal (NCLT) also gave a nod to the merger of ZEEL and Culver Max Entertainment.

The combined entity will own more than 70 TV channels, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India), making it the biggest entertainment network in India.
As per the agreement, ZEEL's Managing Director & CEO Punit Goenka will lead the merged entity.

In an exchange filing on December 17, the company said, "Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('LODR Regulations'), we hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021, entered into amongst the Company, BEPL and CMEPL, the Company has requested CMEPL and BEPL to extend the Date required to make the Scheme effective, as per the terms of the Merger Cooperation Agreement."

Zee stock price performance:

In the last six months, Zee shares have gained 45.52%. The stock has fallen 1.80% in the last three months, while the last one year returns from the stock have increased 6.17%. The last two years returns from shares of Zee Entertainment Enterprises Ltd have fallen 24.80%, while the stock has gained 23.68% in the last three years.