Zee Entertainment Shares Recover from Morning Losses, Denies Merger Cancellation Reports

Zee Entertainment Shares Recover from Morning Losses, Denies Merger Cancellation Reports

VoM News Desk | January 9, 2024 | 01:51 PM IST | Breaking News | Follow on Google News

Zee Entertainment Shares Recover from Morning Losses, Denies Merger Cancellation Reports/Agencies

Zee Entertainment Shares Recover from Morning Losses, Denies Merger Cancellation Reports

Zee Entertainment’s share price recovered from significant losses earlier in the day on Tuesday after the company clarified that reports hinting at the possible cancellation of its merger with Sony Group were factually incorrect.

Initially, the share price plummeted nearly 13% during the morning trade session following a report suggesting the potential cancellation of the merger between Zee Entertainment and Sony Group.

Both BSE and NSE sought clarification from Zee Entertainment in response to these reports. Zee Entertainment promptly stated that the reports were factually inaccurate. They emphasized their commitment to the merger with Sony and assured their continued efforts toward its successful closure.

The share price, opening at a 10% lower circuit, witnessed a 12.7% plunge to ₹242.30. However, as of mid-day, the stock showed signs of recovery, trading at ₹262.10, marking a 5.53% decline from the previous close.

Reports indicated a substantial volume of Zee Entertainment shares being exchanged, with around 1.35 crore shares worth ₹340.1 crore changing hands at an average of ₹252 per share, as reported by CNBC-TV18.

Earlier speculation suggested that the cancellation of the merger might be due to a standoff regarding the leadership of the merged entity, notably concerning Zee’s CEO, Punit Goenka, who is also the founder’s son.

Despite reports of potential termination by Sony Group before the Jan. 20 extended deadline, discussions between the involved parties persist, leaving room for a resolution before the deadline.

The proposed merger aimed to create a $10 billion media conglomerate, with Sony Pictures Networks India Pvt. holding a 50.86% stake and the Goenka family possessing 3.99%, following the agreement finalized in 2021. The merger, which received most regulatory approvals, aimed to bolster the company’s competitiveness against global and local industry giants.

The recent fluctuations in Zee Entertainment’s share price reflect ongoing volatility, with a notable increase in December followed by a 9% decline in January. December witnessed significant gains following the extension of the merger deadline, adding to the rollercoaster ride of Zee Entertainment’s stock in recent times.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.