ZEEL takes hold of 26% equity stake in Zee Network Distribution Ltd
In a letter to BSE, the company said it has concluded the acquisition and Zee Network Distribution Ltd has now become a wholly-owned subsidiary on and from August 9
Zee Entertainment Enterprises Ltd has bought the balance 26 per cent equity stake in Zee Network Distribution Ltd, as per media reports.
In a letter to Bombay Stock Exchange, the company has said: “In this regard, we wish to inform you that, upon completion of all conditions precedent including inter alia change of name of the subsidiary after removing the word 'Turner' to Zee Network Distribution Ltd, the company has concluded the said acquisition and accordingly, Zee Network Distribution Ltd has now become a wholly-owned subsidiary on and from 9 August 2019.”
The company has further stated: “The channel distribution business in the recent past was shifted to various entities and is currently housed under the company directly since 2016 and consequently there have been no active operations of ZNDL since last few years, except for holding 50 per cent equity stake in Zee-Star distribution joint venture 'Media-pro Entertainment Private Ltd’ (Mediapro), which discontinued the distribution business in 2014…In view of this, the joint venture partners had mutually agreed to terminate the joint venture agreement with the acquisition of Turner's equity stake of 26 per cent (26,000 shares of Rs 10 each) in ZNDL by the company at par value aggregating to Rs 260,000/-, thereby making ZNDL a wholly-owned subsidiary of the company.”
In May, media reports had stated that the ZEEL stake sale had reached an advanced stage and had achieved a steady progress.
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