In an extra-ordinary general meeting held yesterday, the shareholders of ETC Network Limited approved allotment of preferential shares to Zee Telefilms Limited (ZTL).
The company will be issuing 22.2 lakh equity shares of Rs 10 each at a premium of Rs 21.52 per share aggregating Rs 7 crore to ZTL on a preferential basis. Earlier, ZTL had announced that it was picking up 57 per cent stake in ETC in two phases.
Addressing the investors, the Chairperson Mr. Jagjit Singh Kohli said, “In response to the changing times, we are continuously striving to make our Group as market driven and agile as possible. Consolidation of channel interests and co-operation would allow the Company to have tremendous opportunities to build on synergies. As a result of this merger, there will be improved content offerings, which will drive viewership and subscriber fees”.
“ETC brand has been nurtured to bring it to a leading position both in the music and Punjabi segment. As part of Zee Network, we will have tremendous opportunities to build on synergies,” said Mr. Sandeep Goyal, C.E.O. Zee.
With this ETC Networks Ltd. will now be part of the Zee-Turner bouquet. It will also benefit from financial and business resources of Zee and access to overseas market.
ETC will be able to augment its revenue streams by content syndication and subscriptions from overseas markets especially for its most prestigious and valuable property ‘Gurbani’.
According to industry sources, had ETC built its own network for carrying the channels for foreign skies, it would have taken a sizable investment and a very long time. All these would have had a direct and immediate impact on revenues and bottomline of ETC and benefit of its stakeholders.