Mumbai: Zee Entertainment stocks soared on a merger deal with Sony Pictures on Wednesday.
The shares gained around 25 per cent on the merger deal. It opened at Rs 281.25 and was trading at 319.70, up 63.00 points or 24.83 per cent at 1245 hrs.
Zee Entertainment Enterprises Ltd (ZEEL) on Wednesday announced the board had given in-principle approval for the merger between Sony Pictures Networks India (SPNI) and ZEEL.
As per the deal, Sony Pictures Networks would hold a majority stake in the merged entity and infuse US$ 1.75 billion.
“The shareholders of SPNI will hold a majority stake in the merged entity. The shareholders of SPNI will also infuse growth capital into SPNI as part of the merger such that SPNI has approximately USD1.575 billion at closing, for use in pursuing other growth opportunities,” Zee Entertainment said in a BSE filing.
Post-merger, Zee Entertainment stakeholders would hold a 47.07 per cent equity stake in the merged entity while Sony Pictures Networks will hold the balance 52.93 per cent in the merged entity.