Zee-Sony Merger: In intraday trade on Thursday, shares of Zee Entertainment Enterprises (ZEEL) rose 6% to Rs 283.75 after the Competition Commission of India (CCI) granted conditional approval to the company’s proposed merger with Sony Pictures Networks (SPN) India.
On the other hand, Trilegal served as the sole advisor to ZEE Entertainment Enterprises Limited (ZEE) and Essel Group in obtaining the Competition Commission of India (CCI) approval for the proposed ZEE-Sony merger. Trilegal served as lead counsel before the CCI in connection with the ZEE-Sony merger, which was approved on October 4, 2022, subject to certain modifications.
Also Read: IAF gets first made-in-India light combat helicopter
With their prima facie competition concerns, the CCI issued a show-cause notice and sought an explanation as to why a detailed investigation in Phase II should not be conducted. The Trilegal team used legal and economic arguments to persuade the CCI to approve the ZEE-Sony merger in Phase I with certain conditions.
.@CNBCTV18Live
CLSA on Zee
BUY
TP Rs316
Zee-Sony merger a key rerating catalyst, in our view, and Zee stock valuation is compelling, currently trading at a 15x PE for FY24CL
The CCI approval is a significant positive. Zee and Sony, when merged, will be listed in India, and Sony— Abhishek Kothari đŸ‡®đŸ‡³ (@kothariabhishek) October 6, 2022
Zee Entertainment Enterprises Ltd. shares rose after India’s competition regulator granted conditional approval to Zee Entertainment Enterprises Ltd. and Sony Group’s Indian unit’s proposed merger.
The proposed combination has been approved by the regulator subject to modifications by the parties. Sony will initially own 52.93% of the merged company, according to Zee Entertainment’s disclosures and BQ Prime’s calculations. The company’s stock rose as much as 6.8% in early trading, extending gains from Tuesday, when it rose 7.6% intraday.
Meanwhile, The flagship channels in Hindi general entertainment are Zee TV and Sony Entertainment Television. According to data, the two players have a combined viewership share of 36% in Hindi general entertainment.
On the other hand, The stock of ZEEL has increased by 13% in the last week, compared to a 3.5% increase in the S&P BSE Sensex. The stock has gained 26% in the last three months, compared to a 9% increase in the benchmark index. However, it underperformed the market over the last six months, falling 5% compared to the Sensex’s 2% decline.
