The merger between Zee Entertainment and Sony Pictures Networks India has been approved. The Board of Directors of Zee Entertainment Enterprises has approved an agreement between ZEEL and SPNI (Sony Pictures Networks India). The Board has taken this decision not only keeping in view the financial standards but also because of a scheme. On the merger, the Board says that the merger will prove to be very good for both shareholders and stakeholders.
According to the same Zee Business, ZEEL has merged with a leading media and entertainment company in South Asia keeping in mind the benefits of a scheme. Now ZEEL management will work to fully activate the merger. After the merger of these companies, Puneet Goenka will continue to be the MD and CEO of the company. A special plan for investment has also been prepared for the merger.
According to reports, Sony Pictures Entertainment is going to invest $157.5 million (approximately Rs 11,605 crores) after the merger. The amount of this investment will be utilized for development and after the merger, Sony Entertainment Majority will be the shareholder. Let me tell you that a non-binding term sheet has been signed between the two sides and within 90 days both sides will work like due diligence. The important thing is that even after this merger, the company will be listed in the Indian stock market and a non-compete agreement will also be signed between the two sides.