Zee Entertainment Enterprises witnessed a notable surge in its shares, rising over 4 percent during morning trades on the NSE on February 20. Reports circulating suggest that Zee and Sony Pictures Networks (India) are exploring the possibility of reviving their mega merger deal, which was called off recently.
As of 11:57 am, the shares were trading 4.20% higher at ₹186.00.
According to The Economic Times, Zee Entertainment Enterprises Ltd (ZEEL) is actively working towards reviving the $10-billion merger deal that fell through on January 22. Meetings have been held over the last fortnight in an attempt to salvage the deal. However, the details of these discussions couldn’t be independently verified by Moneycontrol.
The report indicates that Zee is expected to communicate its stance to Sony within the next 24-48 hours, signaling whether it is willing to accept the terms and conditions proposed for the revived merger.
In response to the initial breakdown of the deal, Hiroki Totoki, president, COO & CFO of Sony, highlighted India’s immense growth potential as a market. He expressed Sony’s commitment to exploring various opportunities in the region, stating, “We will try to seek various opportunities and if we can find another opportunity that would replace this type of plan.”
The potential revival of the merger deal has sparked renewed interest among investors, reflecting positively in the surge of Zee Entertainment Enterprises’ shares on the stock market.