Zee's stock price shoots up after CCI approval for merger with Sony

6 Oct 2022 , 12:10 PM

Following the Competition Commission of India’s (CCI) conditional approval of the company’s proposed merger with Sony Pictures Networks (SPN) India, shares of Zee Entertainment Enterprises (ZEEL) increased 6% to Rs 283.75 on Thursday.

According to a filing with the exchange, “the Competition Commission of India (CCI) has approved the amalgamation 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, with a few modifications.

The ZEEL stock increased 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 last six months, declining 5% as opposed to the Sensex’s 2% loss.

The National Company Law Tribunal had requested last month that Zee call a shareholder meeting on October 14 to seek permission for the planned merger. The leading entertainment networks in Hindi are Zee TV and Sony Entertainment Television. According to research, the two actors have a combined viewing share of 36% in Hindi general entertainment.

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