After granting an ‘in-principle’ approval of 9X buyout, the ZEEL Board of Directors on April 29 approved the scheme of arrangement between ZEEL and INX Media. As per the scheme, 9X, the GEC from INX Media, will be demerged and will be vested with ZEEL. With this acquisition, ZEEL will also take over the liability of Rs 600 million.
The proposed acquisition would be funded by issuance of new shares by ZEEL to shareholders of INX Media and the share swap ratio has been proposed at 1 (one) equity share of Re 1 each of ZEEL for every 71 equity shares of Rs 10 each of INX Media held by the shareholders of INX as on June 30, 2010.
Commenting on the acquisition, Subhash Chandra, Chairman, ZEEL, said, “Zee Entertainment is a leading provider of entertainment content across genres. With this acquisition, we hope to be able to expand our presence in the Hindi GEC space. We would also explore the opportunity to take this content to our international markets. This move is part of our continuing efforts to improve long-term shareholder value.”
Punit Goenka, CEO, ZEEL, added, “While Zee has a dominant presence in the Hindi GEC genre, we have been looking at an opportunity to add to our offering and create better value. This acquisition would allow us a good opportunity to exploit better synergies across the entertainment genre. We would continue to operate the channel under the 9X brand and look at improving connect with our viewers.”