Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises Limited (ZEEL) have agreed to merge Zeel into SPNI and link their linear network, digital assets, production operations and program libraries.
After the closure, the newly combined company will be publicly listed in India.
As per the terms of the definitive agreements, SPNI will have a cash balance of $1.5 billion at closing, which includes investments by existing shareholders of SPNI and the founders of ZEEL.
SPNI is an indirect subsidiary of Sony Pictures Entertainment Inc. (SPE).
Post-merger, SPE will indirectly hold a majority stake of 50.86 per cent in the combined company, with Zeel founders holding 3.99% and other Zeel shareholders with 45.15%.
ZEEL’s Puneet Goenka will lead the combined company as its Managing Director and CEO. Most of the board of directors of the merged entity will be nominated by the Sony Group and will include NP Singh, the current MD of SPNI.
Mr. Singh will assume a broader executive position at SPE as President of Sony Pictures India, reporting to Ravi Ahuja, President of SPE, Global Television Studios.
The founders of ZEEL have agreed to limit the equity that they can hold in the combined company to 20% of its outstanding shares.
“This is an important milestone for all of us, as two major media and entertainment companies join hands to drive the next era of entertainment,” said Mr. Goenka.
“The combined company will create a comprehensive entertainment business, allowing us to serve our consumers with a wide range of content options,” he said.
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