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ZEE mentioned in an announcement that approvals mark a “agency and constructive step” within the total merger approval course of and permits the corporate to proceed with the following steps within the total merger course of.
The 2 firms had already filed an utility within the Competitors Fee of India (CCI) for its permission and can now file for approvals from the Nationwide Firm Regulation Tribunal (NCLT) and different regulatory approvals.
ZEE and SPN had signed a definitive settlement to merge the 2 firms on December 22, final yr.
The proposed merger will see ZEE merging into SPN and, after closing, the merged firm might be publicly listed in India. Below the phrases of the definitive agreements, SPN could have a money steadiness of $1.5 billion (assuming an INR to USD ratio of 75:1) at closing, together with by way of an infusion by the present shareholders of SPN and the promoters of ZEE.
As a part of a non-compete settlement, SPE pays Rs 1101.31 crore to ZEE’s founder promoters as a non-compete price, which might be utilized by the promoters to infuse main fairness capital into SPN, entitling them to amass an extra 2.11% shares of the merged firm.
Submit-merger, SPE will maintain 50.86% of the merged firm, whereas ZEE promoters will maintain 3.99%. Current shareholders of ZEE will maintain a forty five.15% fairness stake within the merged firm.
As per the settlement, ZEE MD & CEO Punit Goenka will lead the merged firm as its MD and CEO. The board could have 9 administrators, of whom the Sony Group will nominate 5, whereas three might be impartial.
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