PE Fund Investments
ZEE, Sony Pictures seal merger; Sony to hold 51% stake in merged entity
Publicly listed Zee Entertainment Enterprises Ltd (ZEEL) and fellow Mumbai-based Sony Pictures Networks India Pvt Ltd (SPNI) have signed definitive agreements to merge ZEEL into SPNI and combine their linear networks, digital assets, production operations and programme libraries. After closing, the new combined company will be publicly listed in India, and SPNI will hold a 50.86% stake in it. The promoters of ZEEL will hold 3.99%, and the other ZEEL shareholders will hold 45.15%. SPNI is an indirect subsidiary of US-based Sony Pictures Entertainment Inc (SPE). Punit Goenka will lead the combined company as its MD & CEO. The board will include NP Singh, the current MD and CEO of SPNI. The promoters of ZEEL have agreed to limit the equity that they may own in the combined company to 20% of its outstanding shares. SPE was advised on this transaction by Morgan Stanley, KPMG Corporate Finance, and Shardul Amarchand Mangaldas & Co. ZEEL was advised by KPMG, JP Morgan, Trilegal and Boston Consulting Group.
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