InvestorQ : Is it true that Zee Entertainment is going to merge with Sony India?
shivani Walawalkar made post

Is it true that Zee Entertainment is going to merge with Sony India?

Sakshi Malhotra answered.
2 years ago
This happened days after the company’s biggest shareholder called for an Extra-Ordinary General Meeting (EGM) to remove Punit Goenka as the Managing Director (MD) and in the meanwhile, Zee Entertainment has approved the company’s merger with Sony Pictures Network India.

The said merger ratio is expected to result in the shareholders of the company holding around 47.07% in the new company (merged company) and the Promoters of Sony India will be holding about 52.93% in the merged company, after the infusion of capital in Sony India as part of the merger terms and conditions.

As part of this merger, Punit Goenka shall continue to be the MD and Chief Executive Officer (CEO) of the new entity (merged) for the next five years. It is also agreed upon that the promoter family will be free to increase their shareholding up to 20% from the current at about 4% as per the applicable law. Owing to the merger, the company also entered into a non-binding term sheet with SPNI to merge digital assets, production operations, linear networks, and program libraries.

It is also in question that whether Rakesh Junjunwala was aware of the said transactions even before they were in the news? As he already bought lakhs of shares of the company. If that is so, that is nothing less than insider trading. However, it is just a presumption, and nothing is confirmed yet.