Sony Pictures Networks India, Zee Entertainment sign merger agreement

 The agreements follow the conclusion of an exclusive negotiation period during which ZEEL and SPNI conducted mutual due diligence.

Sony Pictures Networks India Private Limited (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday announced that 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. After closing, the new combined company will be publicly listed in India. The closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third party approvals.

Under the terms of the definitive agreements, SPNI will have cash balance of $1.5 bn at closing, including through infusion by the current shareholders of SPNI and the promoters (founders) of ZEEL, to enable 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…

Sony eyes up to 30% stake in Mukesh Ambani’s Network18 after Zee bid failed

Sony, said sources, is expected to evaluate its options carefully owing to regulation around foreign direct investment in media

Japanese major Sony Corporation is in preliminary talks with Mukesh Ambani’s Network18 Media & Investments for a possible stake buy, making it the second attempt by the group in 10 months for a local acquisition.

In March, Sony had emerged the front runner to acquire a 20 per cent stake in Zee after the promoters of the latter said they were ready to offload up to half their shareholding to a strategic investor.

The talks had eventually fallen through over a valuation mismatch, forcing the Japanese major, which runs a bouquet of entertainment channels in the country, to look elsewhere, said persons in the know. Apart from a stake buy, some other options on the table include a merger of the entertainment businesses of Sony and Network18 Media, they said, as the Japanese major seeks to consolidate its presence in India, a market it considers key.

Sony, said sources, is expected to evaluate its options carefully owing to regulation around foreign direct investment in media. While 100 per cent FDI is permitted in the entertainment broadcast business here, FDI in news media is capped at 26 per cent, both in the broadcast and digital segments.

Sony may go for a 25-30 per cent stake in Network18, said persons in the know. Network18’s FY19 gross debt stood at Rs 3,045 crore, while net debt stood at Rs 2,860 crore. Based on Thursday’s close, Network18’s market capitalisation stood at Rs 2,900 crore, the data from the BSE shows…

Zee group’s Subhash Chandra gives personal guarantee to mutual funds

Lenders ink formal agreement giving them greater control over developments at Zee

Companies News: Lenders have driven a hard bargain with Subhash Chandra, the Zee group chairman, asking him to provide a personal guarantee for payment obligations on an “irrevocable and unconditional” basis.

The formal agreement inked between Zee and a committee of lenders (CoL) gives the latter more powers and greater control over the developments at the media major. The Zee group owes Rs 13,500 crore to lenders, whose exposure is secured by equity shares of listed firms that include Zee Entertainment and Dish TV.

In response to queries regarding this, Zee said, “As communicated through our official statement issued on February 3, the lenders have agreed that there will not be any event of default declared, due to the movement in the stock price of Essel Group’s listed corporate entities, giving Essel Group the required level of time to complete the strategic sale process of its key assets without any compromise on the value. Any additional terms pertaining to the agreement cannot be shared since we are bound by a confidentiality agreement.”

Zee and lenders had decided to enter into an agreement to not offload the pledged shares amid a sharp slide in the prices of the underlying securities during end-Janury. Business Standard has reviewed the draft agreement copy, which was formalised over the weekend…Read More