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Wed, December 22, 2021, 9:21 AM
Zee Entertainment Enterprises Ltd., India’s largest listed television network, approved a merger agreement with Sony Group Corp.’s local unit amid a complicated boardroom and courtroom feud between Zee’s founders and its largest shareholder.
Sony Pictures Networks India Pvt. will own a 50.86% stake in the merged entity while Zee’s founders will own 3.99%, according to an exchange filing from Zee Wednesday. Public shareholders will have the remaining 45.15% as part of the definitive agreement.
The transaction will help expand Sony’s media business in the world’s second-most populous country where Zee commands 17% of the media and entertainment market. The announcement comes three months after Zee and Sony’s non-binding pact was made public on Sept. 22 that escalated a takeover battle between founder Subhash Chandra’s family and Atlanta-based Invesco Developing Markets Fund, which owns a 18% stake, the largest chunk of equity.
Zee’s board also approved the appointment of Punit Goenka, Chandra’s son, as the chief executive officer of the newly created entity, the filing said. Zee’s founders also agreed to cap the equity they may own in the combined company to 20% of its outstanding shares, according to the terms of the deal.
