ETC Networks to merge with Zee

ETC Networks to merge with Zee
PTI
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First Published: Wed, Dec 23 2009. 04 28 PM IST
Updated: Wed, Dec 23 2009. 04 28 PM IST
Mumbai: Zee Entertainment Enterprises on Wednesday said that its board of directors had given in-principle nod to merge subsidiary ETC Networks with itself.
After the merger, the company would demerge its education business into a separate entity, Zee said in a statement to the Bombay Stock Exchange (BSE).
ETC Networks Ltd owns Zee Interactive Learning Systems and two channels—ETC Hindi and ETC Channel Punjabi.
The board of directors at its meeting on Wednesday granted its in-principle approval for the amalgamation of ETC Networks with the company and ‘upon such merger, demerge the education business from the company into a separate company,’ the media and entertainment major said.
In a separate filing, ETC Networks informed its merger with holding company—ZEEL.
ZEEL said that the said merger and demerger shall be under a composite scheme of arrangement under the Companies Act, 1956, subject to appropriate statutory and regulatory approvals, and the demerged entity shall be listed at the stock exchanges where the company’s shares are listed.
The company also said that the board of directors at another meeting on 29 December would consider a detailed composite scheme of arrangement.
Shares of Zee Entertainment rose 0.75% and closed at Rs265.05, while ETC Networks stocks surged 4.86% to settle the day at Rs200.55 on the BSE.
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First Published: Wed, Dec 23 2009. 04 28 PM IST