Zee Entertainment Enterprises (ZEEL) today said its board has approved the acquisition of its group firm Zee News Ltd's (ZNL) regional general entertainment business (R-GEC) on a share swap deal basis.
ZEEL will issue new shares to ZNL shareholders in order to fund the acquisition.
The share swap ratio for this deal has been proposed at four equity shares of ZEEL for 19 shares held in ZNL, ZEEL said in a statement to the Bombay Stock Exchange (BSE).
The acquisition of the R-GEC business includes six television channels — Zee Marathi, Zee Bangla, Zee Telugu, Zee Kannada, Zee Talkies and Zee Cinemalu along with their assets and liabilities.
The appointed date for the scheme of arrangement will be January 1, 2010, it said. The scheme is subject to necessary approvals from the stakeholders and regulatory authorities.
"This move is part of our continuing efforts to improve long-term shareholder value," ZEEL Chairman Subhash Chandra said.
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Further, ZEEL's board also approved the appointment of Punit Goenka as the Managing Director of the company for a period of five years from January 01, 2010. Goenka's term as whole-time director & CEO expires on December 31, 2009.
Shares of ZEEL were trading at Rs 233.60, down 1.06 per cent in afternoon trade on the BSE, while ZNL was trading at Rs 52, up 3.59 per cent.