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21 November, 2024 18:29 IST |
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Perspective on 'Zee announcing final deal contours with Sony'
Source: IRIS | 22 Dec, 2021, 07.02PM
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| Rating: NAN / 5 stars. |
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 Zee Entertainment Enterprises, one of the largest Indian media and entertainment companies, announced completion of the due diligence and final contours of the deal. The structure remains as per earlier announcement with Sony holding 51% stake in the entity and Promoter’s holding 4%, while the rest be held by public. The deal now should go for regulatory and shareholder/creditor approvals which may take 3-4 quarters.
"While Zee had a healthy balance sheet and market position, but strategically the merged entity’s scale will drive better market standing (revenue and cost synergies) and ability to intensify OTT foray," stated Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
"The merged entity’s higher competitive position in the market and synergy gains, will give companies significant potential to improve profitability. Improving corporate governance and operational performance could aid in the long run significantly," he added.
He further said, "The stock despite the rally in last couple of weeks is still trading at below 20x and including the Sony Pictures Network India (SPNI) is yet valued attractively. Improving corporate governance and operational performance could aid in the long run significantly."
Disclaimer: IRIS has taken due care and caution in compilation of data for its website. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
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