Zee Entertainment Enterprises to be replaced by Culver Max Entertainment in FTSE indices after Sony merger
- According to Zee-Sony merger terms, eligible Zee Entertainment Enterprises shareholders will receive 85 new Culver Max Entertainment shares for every 100 shares held.
Zee Entertainment Enterprises Ltd. (ZEEL) will be delisted from FTSE Global Equity indices following its merger with Sony Entertainment India.
ZEE will be replaced by Culver Max Entertainment, which is Sony Pictures Networks India.
Culver Max Entertainment (Sony Entertainment India) has proposed to acquire Zee Entertainment Enterprises and Zee Entertainment Enterprises will delist from the exchange, FTSE Russell noted.
The effective date of the merger, the last trading day of Zee Entertainment Enterprises and the listing date of Culver Max Entertainment have not yet been confirmed, FTSE Russell said in a statement.
According to the merger terms, eligible Zee Entertainment Enterprises shareholders will receive 85 new Culver Max Entertainment shares for every 100 shares held.
“...subject to the completion of the merger, FTSE Russell anticipates Culver Max Entertainment will replace Zee Entertainment Enterprises in the FTSE Global Equity indices based on the merger terms on the effective date of the merger,” it said.
The Zee-Sony merger was approved by National Company Law Tribunal (NCLT) on August 10 this year, dismissing objections from various creditors to Zee.
One of the key conditions of the Zee-Sony merger is that Punit Goenka would continue as the MD and CEO of the merged entity.
Meanwhile, Axis Finance Ltd on September 14 moved the National Company Law Appellate Tribunal (NCLAT) against NCLT’s order approving the deal.
The non-bank lender told an appeals court that the NCLT approved the Zee-Sony merger was in “contravention" of a regulatory order against Punit Goenka, former managing director and chief executive officer of Zee Entertainment Enterprises Ltd.
The Axis Finance petition in NCLAT claimed the merger could not have been sanctioned until an integral part of the scheme—Punit Goenka as head of the merged entity— was resolved.
Zee share price has rallied more than 53% in the last three months, while the stock is up over 10% YTD.
At 11:30 am, ZEE share price was trading 0.76% lower at ₹266.10 apiece on the BSE.
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