Thursday's intraday trading saw a 6% increase in Zee Entertainment Enterprises (ZEEL) share price to Rs 283.75 following the Competition Commission of India's (CCI) conditional clearance of the company's proposed merger with Sony Pictures Networks (SPN) India.
The merger of Zee Entertainment Enterprises Limited and Bangla Entertainment Private Limited (BEPL) with Culver Max Entertainment Private Limited (CMEPL), formerly known as Sony Pictures Networks India Private Limited, has been given the go-ahead by the Competition Commission of India (CCI), according to a filing with the stock exchange by ZEEL.
The ZEEL stock gained 13% during the course of the last week, while the S&P BSE Sensex rose only 3.5%. In the last three months, the stock increased 26% as opposed to the benchmark index's 9% growth. However, it underperformed the market during the past six months, declining 5% as opposed to Sensex's 2% loss.
The National Company Law Tribunal had asked last month that Zee call a shareholder meeting on October 14 to seek permission for the proposed merger. The leading entertainment networks in Hindi are Zee TV and Sony Entertainment Television. According to research, the two actors have a combined viewership share of 36% in Hindi general entertainment.
According to Sony Pictures Networks India, “We are delighted to receive CCI approvals to merge ZEEL into SPN. We will now await the remaining regulatory approvals to finally launch the newly merged company. The merged company will create extraordinary value for Indian consumers and eventually lead the consumer transition from traditional pay TV into the digital future,”