Due diligence: Zee is in the final stages of the completion process

Zee Entertainment Enterprises (ZEEL) is in the final stages of completing due diligence for its proposed merger with Sony Pictures Networks India (SPNI), a subsidiary of Japan’s Sony Corp, with the December 22 deadline approaching. Both companies entered a 90-day due diligence process on September 22, after the merger was announced.
“The due diligence process, which has spread across cities, will be completed before the deadline. This was a big and tedious process that started in September, given that both companies are located across the country, and is now approaching,” said a source close to the project. Closure.

After completion of ongoing assessments, companies will sign binding agreements and approvals, and will seek approvals from ZEEL shareholders. For the merger, the companies will also need regulatory approvals including those from the Competition Commission of India, SEBI and the National Court of Companies Law, among others.

In September, ZEEL and SPNI signed a non-binding term sheet to combine linear networks of companies, digital assets, production processes, and software libraries. SPNI will also inject, as part of the deal, $1.58 billion into the merged entity.

The combined company will be a publicly traded company, with ZEEL’s Punete Goenka continuing as its Managing Director and CEO for a five-year term. Goenka previously said the merger would create the largest media entertainment player in the country, with stand-alone consolidated revenue of about $2 billion.

The move comes at a time when Invesco, which together with its subsidiary OFI Global China Fund, holds a 17.88% stake in ZEEL, has moved the courts, alleging corporate governance issues at the company.