Zee Entertainment Enterprises today said its board of directors had given in-principle nod to merge subsidiary ETC Networks with itself.
After the merger, the company would demerge its education business into a separate entity, Zee said in a statement to the Bombay Stock Exchange.
ETC Networks owns Zee Interactive Learning Systems and two channels--ETC Hindi and ETC Channel Punjabi.
The board of directors at its meeting today granted its in-principle approval for the amalgamation of ETC Networks with the company and "upon such merger, demerge the education business from the company into a separate company," the media and entertainment major said.
In a separate filing, ETC Networks informed its merger with holding company--ZEEL.
ZEEL said the said merger and demerger shall be under a composite scheme of arrangement under the Companies Act, 1956, subject to appropriate statutory and regulatory approvals, and the demerged entity shall be listed at the stock exchanges where the company's shares are listed.
The company also said the board of directors at another meeting on December 29 would consider a detailed composite scheme of arrangement.
Shares of Zee Entertainment rose 0.75 per cent and closed at Rs 265.05, while ETC Networks stocks surged 4.86 per cent to settle the day at Rs 200.55 on the BSE.