Zee Leisure shares zoom 25% after merger announcement with Sony Photos


New Delhi: Shares of Zee Leisure Enterprises Restricted right this moment zoomed 25 per cent after the announcement of a merger with Sony Photos. The inventory jumped 24.97 per cent to its 52-week excessive of 319.50 on the BSE. On the NSE, it zoomed 24.99 per cent to its 52-week excessive of 319.60.

Main media companies Zee Leisure and Sony Photos on Wednesday mentioned they’ve obtained in-principle approval for a merger between ZEEL and Sony Photos Community India.

Punit Goenka, who’s the managing director & chief government officer of ZEEL, is dealing with strain from the 2 largest shareholders of the corporate – Invesco and OFI World China Fund LLC – to give up the submit, will proceed to stay managing director & chief government officer of the merged entity.

Yash Gupta, Fairness Analysis Analyst, Angel Broking Ltd recommends buyers to be cautious.”Within the merged entity Sony will maintain 53% and Zeel will maintain 47% of complete shareholding, so sony footage shall be holding a majority stake within the merged entity. Sony Photos can even infuse $1.57 billion ( 11,000 crore) into the merged firm. We suggest buyers to be cautious as Zee Leisure Enterprises Ltd up by 78% from 170 to 303 within the final month and as of now, valuations will not be disclosed by Zeel,” he mentioned.

Santosh Meena, Head of Analysis, Swastika Funding Ltd. mentioned that it was anticipated that Punit Goenka won’t simply lose his positions and Zee might provide you with a white knight or one other counter provide. He additional added that it’s a win-win scenario for Zee shareholders

“The market knew that it will likely be a win-win scenario for Zee shareholders whether or not there shall be any change in administration and board or another participant come to purchase a majority stake within the firm. The inventory is buying and selling at very enticing valuations and it is among the strongest and FIIs favorite shares within the media house and if this deal concludes then we may even see a giant rerating within the counter,” mentioned Santosh Meena.

Jitendra Upadhay, Sr. Fairness Analysis Analyst, Bonanza Portfolio says the deal will be capable to drive long run progress in Zee’s valuation as per the merger time period appears affordable even this valuation there’s a risk of an 80 to 100% upside at the very least.

The shareholders of Sony Photos will maintain a majority stake within the merged entity. They can even infuse progress capital into SPNI as a part of the merger such that SPNI has roughly $1.575 billion at closing, to be used in pursuing different progress alternatives.

 

 

 

 

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