Zee Witnesses 7% Rally as Punit Goenka Considers Stepping Down to Finalize Sony Merger

18 Jan 2024 , 02:33 PM

Zee Entertainment Enterprises shares rose more than 7% on Thursday after it was announced that MD and CEO Punit Goenka has offered to step down as CEO of the amalgamated firm following the merger with Sony Pictures.

Following this development, the company’s counter rose to an intraday high of Rs 264 on the NSE.

At around 2.30 PM, Zee Entertainment was trading 2.77% higher at Rs 252.65, against the previous close of Rs 245.85 on NSE.

According to reports, talks are underway between Zee Entertainment and Sony Group to complete the acquisition before the one-month grace period agreed upon by both sides expires.

During the discussion, Goenka offered to take over as CEO of the amalgamated business, but he refused to designate Sony India’s NP Singh as CEO.

The market expected the transaction to be completed by December 21, 2023, the specified date. However, Zee requested that Sony extend the deadline in order to address crucial concerns, including Goenka’s leadership of the combined business.

The one-month grace period to consider and conclude the merger agreement expires on January 20. Earlier this month, news sources stated that Sony Group was considering cancelling the $10 billion merger with Zee because to regulatory concerns involving Goenka.

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