Zee Entertainment shares saw a surge of over 2% in Monday’s stock trade after the broadcaster completed the sale proceedings of Ten Sports Networks to Sony Pictures Network India.
ZEEL had agreed to sell its sports broadcasting business to Sony Pictures Networks and its affiliates upon receipt of $300 million out of a total consideration of $385 million.
The stock on Monday closed at INR 544, a 2% overall gain.
“Since certain conditions relating to closure of second phase of the transaction were taking time, the company and SPNI have mutually concluded the closure of the transaction upon receipt of remittance of consideration of $36.32 million from SPNI,” the company told stock exchanges.
In the second and final tranche, Sony paid $36.32 million to close the transaction, paying $18.68 million less than the original deal price. The adjustment to the consideration amount inter alia is mainly consequent to retention of a leasehold immovable property at Dubai (which earlier formed part of the transaction) by Taj TV, Mauritius, and certain adjustments of the sports business as per the term agreement,” it said.
“Even as most of the handover procedures were in place, the final closures were delayed due to the Ten Sports, Pakistan license transfer to SPNI. Pakistan Electronic Media Regulatory Authority was taking time to transfer the license to SPNI. Now, this bottleneck is cleared the rest were mere formalities,” said a senior source in ZEEL, associated with the transfer proceedings. “SPNI can now shift the entire Ten Sports operations as well as official address to Mumbai.”
The first phase of the transaction comprised the sale of ZEEL’s entire stake in Taj India and transfer of major part of sports broadcasting business of Taj Mauritius. ZEEL’s sports broadcasting business was housed under subsidiaries Taj TV Ltd, Taj Mauritius and Taj Television (India) Pvt Ltd.