Zee Entertainment Shares Gain After Clarification On Sony Merger Talks

Shares of Zee Entertainment Enterprises Ltd. jumped over 3% on Saturday after the company said it was working towards the closure of its proposed merger with Sony.

"The company is engaging in negotiations with Sony, with a view to discuss the extension of the date required to make the scheme effective by a reasonable period of time," an exchange filing said.

It also issued a clarification on Business Standard's report on a board meeting taking place at Sony on Friday.

"We would like to clarify that the company is not aware of, and cannot comment on, any board meeting held or proposed to be held by Culver Max Entertainment Private Limited, given that these are internal matters of Sony," the filing said.

The deadline for the merger was extended to Jan. 20 from Dec. 20, 2023 earlier. On Friday, the stock had ended 5.32% lower.

Shares of ZEEL rose 3.23% before paring gains to trade 0.76% higher at 13:09 p.m., compared to a 0.1% decline in the NSE Nifty 50.

The stock has risen 6.29% in the last 12 months. The relative strength index was at 36.41.

Of the 23 analysts tracking the company, 17 maintain a 'buy' rating, four recommend a 'hold,' and two suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 36%.