Zee Entertainment Shares Jump 6% As Sony Agrees To Discuss Merger Deadline Extension
The stock rose as much as 5.88% to Rs 266.80 apiece on the NSE.
Shares of Zee Entertainment Enterprises Ltd. jumped nearly 6% on Thursday after the company and Sony Group agreed to discuss the extension of the merger deadline.
The initial deadline for the completion of the merger was set for Dec. 21. On Dec. 17. Zee had requested Culver Max Entertainment Pvt.—formerly known as Sony Pictures Networks India Pvt.—and Bangla Entertainment Pvt. to extend the timeline required to make the merger effective.
"The company is now in receipt of a communication from CMEPL and BEPL that they will enter into good faith negotiations as required under the Merger Cooperation Agreement entered amongst the Parties, the company, CMEPL and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time," Zee said in an exchange filing on Wednesday.
Zee's stock rose as much as 5.88% to Rs 266.80 apiece on the NSE. It pared gains to trade 3.75% higher at Rs 261.40 apiece compared to a 0.6% decline in the benchmark Nifty 50 at 9:30 a.m.
It has risen 9.77% on a year-to-date basis. The relative strength index was at 49.35.
Out of 23 analysts tracking the company, 17 have a 'buy' rating on the stock, four recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 24.2%.
