Zee Entertainment, Sony Pictures Networks India sign definitive agreements for merger

Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday said they have signed definitive agreements for their merger following conclusion of an exclusive negotiation period during which both parties conducted mutual due diligence.

In a joint statement, the two companies said they have ‘signed definitive agreements to merge ZEEL with and into SPNI and combine their linear networks, digital assets, production operations and program libraries’. The agreements follow the conclusion of an exclusive negotiation period during which ZEEL and SPNI conducted mutual due diligence, it added.

When the merger deal was announced in September, the two networks had stated that Sony would invest USD 1.575 billion and hold 52.93 per cent stake in the merged entity and Zee the remaining 47.07 per cent.

Under the terms of the definitive agreements, the statement said SPNI will have a cash balance of USD 1.5 billion at closing, including through infusion by the current shareholders of SPNI and the promoter founders of ZEEL.

This is aimed at enabling the combined company ‘to drive sharper content creation across platforms, strengthen its footprint in the rapidly evolving digital ecosystem, bid for media rights in the fast-growing sports landscape and pursue other growth opportunities’, it added.

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