ZEEL acquires Zee Studios' film production & distribution biz for Rs 275 crore
The acquisition is expected to be completed in two months
Zee Entertainment Enterprises Ltd (ZEEL) has acquired the film production and distribution business on a slump sale basis from Zee Studios Limited (formerly known as Essel Vision Productions Limited) for a cash consideration of Rs 275 crore.
The acquisition is expected to be completed in two months.
"This is to inform you that the Board of Directors of the Company at the meeting held today i.e. December 17, 2020, have approved the acquisition of film production and distribution business as a going concern, on a slump sale basis from Zee Studios Limited (formerly known as Essel Vision Productions Limited), a wholly-owned subsidiary of the Company, for a cash consideration, on such terms and conditions as contained in the Business Transfer Agreement ('BTA')," the company said in a regulatory filing.
The company also informed that the film production and distribution business shall be acquired by the company for a cash consideration of INR 275 Crores and subject to Working Capital Adjustments on the date of the transfer as mentioned in the Business Transfer Agreement.
Zee Studios Limited, which is a wholly-owned subsidiary of the company, is engaged in the business of Film and Content Development, Production, and Distribution. Turnover of Film production and distribution business as of 31st March 2020 was Rs 124.11 crore.
This transaction comprises the acquisition of the business undertaking pertaining to the Film Production and Distribution business as a going concern, on a slump sale basis from Zee Studios Limited.
The transaction is between the Company and its wholly-owned subsidiary and would fall within the related party transaction and is being done at arm's length.
The company said that the acquisition of film production and distribution business would inter alia result in acquisition growth opportunities in line with the strategy of target entity if its business is decisions of the Board of Directors of the company.
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