Zeel-Sony merger: Puneet Goenka to continue as MD and CEO of the amalgamated entity

New Delhi: Zee Entertainment Enterprises Limited (Zeal) on Wednesday announced that its board has given in-principle approval to its merger with Sony Pictures Networks India. Puneet Goenka will continue as the Managing Director and Chief Executive Officer of the merged entity.

Presently Goenka is the MD & CEO of Zee Entertainment Enterprises. He became the CEO of ZEEL in 2008 succeeding Pradeep Guha. He is credited for his pivotal role in the launch of Dish TV and Zee Sports before taking over as the CEO of ZEEL.

Talking about the merger, the integrated entity is going to become the largest television network in India. The investors of Zee Entertainment will hold 47.07% in the merged entity while Sony Pictures Networks will hold 52.93%. Further, both the firms have agreed to publicly list the merged company.

Sony Pictures has also agreed to invest US$1575 million in the merged entity. Both parties have signed a non-binding term sheet, while a non-compete agreement will also be signed as the deal progresses. Read also: ZEEL-Sony mega-merger: Deal details, shareholding pattern and all you need to know

“The Board of Directors of ZEEL has conducted a strategic review of the merger proposal between SPNI and ZEEL. As a board consisting of a mix of highly skilled professionals with rich expertise in various fields, we always keep in mind the best interests of all the shareholders and the company. We have unanimously given in-principle approval to the proposal and advised the management to initiate due diligence process. ZEEL is on a strong growth trajectory and the Board firmly believes that this merger will further benefit the Company. The value of the merged entity and the strong synergy between the two groups will not only drive business growth, but will also enable shareholders to benefit from its future successes. As per the legal and regulatory guidelines, at the required stage, the proposal will be submitted to the esteemed shareholders of the company for their approval,” said R Gopalan, Chairman, Zee Entertainment Enterprises Ltd. Also read: Zee Entertainment- Sony India merger: Here are the highlights of the mega-deal

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