Zee Entertainment Announces Plan To Raise Funds Through Share Issuance, QIPs
Zee Entertainment plans to raise funds through share issuance and QIPs, following Sony merger cancellation.
Leading broadcaster Zee Entertainment on Monday said it is planning to raise funds from the market through various routes, including issuing of equity of shares, and qualified institutions placements.
Though the company has not specified the amount it plans to raise, Zee Entertainment Enterprise Ltd in a regulatory filing said its board is meeting on June 6 to consider the proposal for this.
"A meeting of the Board of Directors of the Company is scheduled to be held on... June 6, inter-alia, to consider raising of funds by way of issuance of equity shares and/or any other eligible securities (convertible/non-convertible) through permissible modes..." it said.
This will be not limited to a private placement, a QIP, a preferential issue, or any other method or combination of methods subject to such approvals as may be required, the filing said.
This latest round of fundraising is after the Sony Corporation terminated a deal to merge its two entertainment entities in India with ZEEL.
After the termination of the said merger agreement, ZEEL had announced a strategic realignment of its revenue vertical, which is being directly driven by the MD & CEO.
In an investor conference call in March, Zee Chairman said since 2020, ZEEL's performance has been impacted due to industry-wide macro slowdown, transitory issues, and management bandwidth constraints due to merger activities.
The board has also decided to closely monitor the business model and plan presented by the MD & CEO of the company, wherein he has provided the roadmap to improve the performance and efficiency of each of the businesses to achieve higher EBITDA.
In March, ZEEL laid off 50% of its staff at its Bengaluru-based Technology and Innovation Centre.
On May 23, ZEEL sought a termination fee of $ 90 million (around Rs 748.7 crore) from the Sony Group for calling off the $10-billion merger deal in January this year.
It has sought termination fees from two Sony Group entities -- Sony Pictures Networks India, now known as Culver Max Entertainment, and Bangla Entertainment -- ZEEL had said in a regulatory filing on Thursday.
ZEEL and SPNI had entered into an agreement to merge on Dec. 22, 2021.
On Aug. 10, 2023, the Mumbai bench of NCLT approved the scheme of merger of ZEEL with Sony group entities Culver Max Entertainment and BEPL, which could have created a $10-billion media entity.
However, two years after that, Sony Corporation announced the termination of the agreement on January 22.
