Media and entertainment conglomerate ZEE Entertainment Enterprises Limited (ZEEL) has received approval from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for a proposed merger with Culver Max Entertainment Pvt Ltd, formerly Sony Pictures Networks India Pvt Ltd. was known as. The company said in a statement on Friday.
Describing this as a firm and positive step in the overall merger approval process, the company said that the approval allows it to proceed with the next steps which are now subject to approval from CCI (Competition Commission of India), NCLT (National Company Law) . Tribunal) and shareholders.
Last December, the two companies announced that they had signed definitive agreements to merge and combine their linear networks, digital assets, production operations and program libraries. The two companies said in a statement that the agreements were concluded after a negotiating period during which ZEEL and SPNI had mutually exercised due diligence. After the closure, the newly combined company will be publicly listed in India.
Puneet Goenka will lead the combined company as its Managing Director and CEO. Most of the board of directors of the combined company will be nominated by the Sony Group and will include the current Managing Director and CEO of SPNI, NP Singh. At the conclusion, Singh will assume a broader executive position at SPE as President of Sony Pictures India (a division of SPE), reporting to SPE’s Global Television Studios and Ravi Ahuja, President of SPE Corporate Development. The combined entity will have 75 television channels, two video streaming services, two film studios and one digital content studio. Media industry analysts say the two firms should complement each other. While Sony has a rich catalog of sports and mainstream general entertainment channels (GEC), Zee has a good memory in the regional segment. Both have very strong film libraries, he explains.
To be sure, Zee’s founding family was embroiled in a bitter battle with its largest shareholder Invesco for three months before the merger was announced, which led a division bench of the Bombay High Court to challenge an earlier order. who had withheld US funds. Manager from convening special shareholders’ meeting for removal of Managing Director Puneet Goenka and restructuring of Zee Board. Zee had challenged Invesco’s attempt to restructure the board in courts, alleging that the US investor was trying to take over India’s largest publicly traded broadcaster at the behest of another company.
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