The Sony Pictures Networks India and Zee Entertainment Enterprises (ZEEL) deal is being viewed positively by the Street. Cash infusion, control of the ZEEL board by Sony, and multiple synergies could reflect on the stock of the merged entity in the medium term.
While the regulatory and shareholder approval process is expected to take around eight months, the culmination in a deal, with most terms broadly in line with the September announcement, removes uncertainty about the merger. Further governance concerns and promoter control over the merged entity seem to have been addressed.
In the deal announced earlier, Zee promoters’ 3.99