Zee Entertainment tumbles ~8% despite reaffirming commitment to closing merger deal

20 Jan 2024 , 03:05 PM

Zee Entertainment Enterprises tumbled as much as 8% in the afternoon session on 20 January even after reaffirming its commitment to a $10 billion merger with Sony’s Indian unit.

The stock fell 5% the day before on news that Sony’s board was meeting to decide on the $10 billion deal, which has been stalled.

The exchanges requested a clarification from the media business. Zee stated that it was unaware of and unable to comment on any board meetings conducted or proposed by Culver Max Entertainment (previously Sony Pictures Networks India).

‘We want to emphasize that our company remains dedicated to merging with Sony. We are actively working to ensure the successful completion of the proposed merger and are participating in constructive negotiations with Sony. Our intention is to discuss extending the deadline necessary to finalize the Scheme by a reasonable timeframe,’ stated Zee in communication with the stock exchanges.

On January 19, the Sony Group reportedly scheduled a board meeting to reach a resolution on the planned $10 billion merger of its India operations with Zed Entertainment Enterprises.

At around 3.00 PM, Zee Entertainment was trading 5.72% lower at Rs 234, against the previous close of Rs 248.20 on NSE. The counter plunged to an intraday low of Rs 229.05 in today’s trade.

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