The shares of Zee Entertainment Enterprises Limited were trading 3.5 per cent higher at Rs 273 levels on Tuesday afternoon. The stock has remained volatile in the last month and has inched marginally by 2.3 per cent.
Recently, the shareholders of the media company have approved the proposed merger of their business with its peer Culver Max Entertainment Pvt Ltd, formerly known as Sony Pictures Networks India.
As per the Composite Scheme of Arrangement, Zee Entertainment Enterprises Ltd and Bangla Entertainment Pvt Ltd will amalgamate with Culver Max Entertainment Pvt Ltd.
The mega-merger deal between Zee and Sony will create one of the largest media groups in the country. The merged entity will own more than 70 television stations, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India).
Culver Max Entertainment Pvt Ltd and Bangla Entertainment Pvt Ltd are both indirect wholly-owned subsidiaries of Sony Group Corporation.
Besides this, the shares of Zee entertainment also made it to the headline today after there were speculations about OFI Global China Fund and Invesco, which hold an 11 per cent stake in the company, might offload their stake in the company through a bulk deal.
The Q2 results of the company are awaited. However, in Q1FY22, the company reported total revenue of Rs 1,845 crores which increased from Rs 1,774 crores in the same period a year prior. In the previous quarter, their revenue stood at Rs 2,322 crores.
Their net profit in the period stood at Rs 106 crores which was a decline from Rs 208 crores in Q1FY21. On a sequential basis, their profit stood at Rs 181 crores.
The company has a market capitalization of Rs 26,006 crores and a dividend yield of 1.11% as of October 18th, 2022.
Written by Anoushka Roy
