Zee gains 3% on reaffirming commitment to closing $10 billion merger with Sony

Zee Entertainment Enterprises gained 3.2 percent in the morning trade on January 20 after the media and entertainment company reaffirmed its commitment to the $10-billion merger with the Indian arm of Japan’s Sony.

At of 11.05 am, shares of Zee were trading at Rs 237.5 on National Stock Exchange, 1.06 percent higher from the previous session’s closing price.

The stock tanked 5 percent the previous day on reports that Sony’s board was meeting to take a call on the $10-billion merger which has been running into hurdles.

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The exchanges sought a clarification from the media company. Zee said it was not aware of and couldn’t comment on any board meeting held or proposed to be held by Culver Max Entertainment (formerly Sony Pictures Networks India).

“We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger and is engaging in good faith negotiations with Sony with a view to discuss the extension of the date required to make the Scheme effective, by a reasonable period of time,” Zee told exchanges.

Also Read | Sony board meets today to decide fate of $10-billion merger with Zee Entertainment

On January 19, the Sony Group is said to have convened a board meeting to arrive at a decision on the proposed $10-billion merger of its India operations with Zee Entertainment Enterprises, an Economic Times report said.

The company was likely to convey the decision to the Tokyo Stock Exchange early next week, signalling potential discontinuation of the merger plan.

Moneycontrol could not verify the report independently.

The Japanese conglomerate was also weighing whether to call off the deal, primarily because of a protracted stalemate over the leadership of the merged entity. The core issue centres around the role of Punit Goenka, Zee’s chief executive officer and son of its founder Subhash Chandra, in guiding the combined venture.

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