Goenka said the mega-merger between ZEEL and SPNI will create the largest media and entertainment company in India.
ZEE Entertainment Enterprises Limited (ZEEL) Board of Directors unanimously provided in-principle approval for the merger between Sony Pictures Networks India (SPNI) and ZEEL, at a board meeting on September 21, 2021.
After evaluating not just the financial aspects of the deal but also the strategic value of the partner, it was concluded by the board that the merger will be in all shareholders and stakeholders’ best interest.
Managing Director (MD) and Chief Executive Officer (CEO) Punit Goenka will be continuing in his role after the ZEEL-Sony merger.
Speaking about the mega merger, Goenka said, “The mega-merger between ZEE Entertainment Enterprises Limited and Sony Pictures Networks India will create the largest media and entertainment company in India. The merger will create close to $2 billion in revenue.”
The merged entity will have a valuation of $1.6 billion cash, he added. “Shareholding of ZEEL will be 47 per cent in the mega-merger. Similarly, there will be a non-binding term sheet with 90 days of mutual diligence,” said Goenka.
He said that SPNI will have “the right to appoint new people on the board as promoter. The fund infusion avenues will be decided by the new board of the merged entity.” A majority stake in the merged entity will be held by SPNI shareholders.
Goenka noted that there might be overlapping, but it will be largely restricted to the Hindi GEC space. He emphasized that the aim of the merger is to maximise viewership. Goenka stated that a merger does not require an open offer.
The board of the merged entity will take the call on channel rationalisation as well as the capital allocation strategy. The CEO said that first revenue, and then cost, will be optimised from the merged entity.
ZEEL management has been authorised by the Board to initiate the needed due diligence process. As reported by Zee Business, “The shareholders of SPNI will also infuse growth capital into SPNI as part of the merger such that SPNI has approximately $1.575 billion at closing, for use in pursuing other growth opportunities.”
Disclaimer: Zee Entertainment is not our sister concern/ group company. Though our names sound similar our company is owned by Zee Media Corporation which is a different group.
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 "ZEEL-Sony mega merger will create close to $2 billion in revenue, says MD & CEO Punit Goenka")
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