Zee’s Share Price Falls Over 4% Amid Sony Merger Prolongation
Written by Sanjay Kumar
News Highlights
- Zee Share Price Drops 4%: Investor worries escalate as Zee seeks more time for Sony merger deal.
- Market Volatility: Zee’s stock takes a hit with a 4% dip amid uncertainties surrounding the Sony merger.
- Merger Delay Impact: Concerns mount as Zee extends the timeline for the Sony deal, triggering a significant drop in share prices.
In a recent development, Zee Entertainment Enterprises Ltd (ZEEL) witnessed a decline of over 4% in its share price during early trading on Monday (December 18). This downturn comes in the wake of the company’s request for an extension from Sony Pictures Networks India to finalize their proposed $10 billion merger. Zee shares experienced a notable drop, falling by 4.07% to ₹266.05 apiece on the BSE.
Zee Entertainment Enterprises
Media company
- Subsidiaries: Dish TV, Zee Music, Zee Studios
- CEO: Punit Goenka (Jul 2008)
- Founder: Subhash Chandra
- Founded: 25 November 1982
- Headquarters: Mumbai
- Number of employees: 3,429 (2021)
In an official statement released on Sunday (December 17), Zee disclosed, “The Company has requested CMEPL (Culver Max Entertainment Private Limited) and BEPL to extend the Date required to make the Scheme effective, as per the terms of the Merger Cooperation Agreement.” However, the communication did not provide any specific details regarding the reasons behind seeking an extension, leaving investors and stakeholders in the dark. Furthermore, it remains uncertain whether Sony will accede to this request.
Adding to the corporate developments, Zee announced the appointment of three new independent directors—Venkata Ramana Murthy Pinisetti, Shishir Babubhai Desai, and Uttam Prakash Agarwal. Their appointments are set to take effect from December 17, 2023, following the company’s annual general meeting (AGM) held on Saturday.
Notably, the AGM saw the rejection of resolutions proposing the reappointment of independent directors Vivek Mehra and Sasha Mirchandani. The shareholders’ vote fell short of the required 75% majority for special resolutions, with 52% opposing Mehra’s reappointment and 29% against Mirchandani. Additionally, independent director Adesh Kumar Gupta withdrew his candidature on December 13, citing personal reasons just three days before the AGM.
As of 9:45 am, Zee shares continued their downward trajectory, trading 2.60% lower at ₹270.15 apiece on the BSE. The unfolding developments suggest a period of uncertainty and turbulence for Zee Entertainment, prompting investors to closely monitor the situation as it unfolds.
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