The board of Zee Entertainment Enterprises approved the transfer of digital publishing business division of the company to Rapidcube Technologies.
The board of directors of the company on 17 December 2020, approved the transfer of the digital publishing business division of the company to Rapidcube Technologies (Rapidcube) through a business transfer agreement, the company said.
The digital publishing business division of the company is valued at Rs 63.77 crore. It contributed Rs 32.80 crore revenue for FY19-20, constituting nearly 0.5% of the total standalone business. Net worth contributed by this digital publishing business division for FY 19-20 was Rs 63.20 crore.
The date of completion of transfer of the digital publishing business division to Rapidcube would depend upon receipt of relevant approvals and completion of conditions precedent (as identified in the agreement for transfer of the business), the company said in a statement.
Consideration of Rs 63.77 crore to be discharged by Rapidcube by way of issuing its equity shares of Rs 10 each to the company, subject to working capital adjustments on the date of transfer as mentioned in the business transfer agreement, the company said.
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Established this year, Rapidcube is a private company limited by shares and is the wholly owned subsidiary of Zee Media Corporation. The authorized and paid up equity share capital of Rapidcube is Rs 10 lakh as on date.
Further, the company's board also approved the acquisition of film production and distribution business from Zee Studios. Formerly known as Essel Vision Productions, Zee Studios is a wholly owned subsidiary of the company.
This transaction comprises the acquisition of the business undertaking pertaining to film production and distribution business as a going concern, on a slump sale basis from Zee Studios.
Zee Studios is engaged in the business of TV content development, film production and distribution. As on 31 March 2020, the turnover of film production and distribution business stood at Rs 124.11 crore.
The acquisition of film production and distribution business would inter alia result in growth opportunities in line with the strategic decisions of the company's board, Zee Entertainment said in a statement. It will take approximately two months to complete the acquisition.
On a consolidated basis, Zee Entertainment Enterprises (ZEEL)'s net profit tumbled 77.3% to Rs 93.41 crore in Q2 September 2020 from Rs 412.09 crore in Q2 September 2018. Net sales fell 18.8% to Rs 1,722.70 crore in Q2 September 2020 over Q2 September 2019.
Shares of Zee Entertainment Enterprises gained 0.11% to Rs 702.10 on BSE. ZEEL is a media and entertainment company engaged in providing broadcasting services.
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