Sony Pictures Networks India Pvt. Ltd. signed definitive agreement to acquire Zee Entertainment Enterprises Limited (NSEI:ZEEL) on December 21, 2021. Under the terms of the transaction, Sony Pictures Networks will issue 85 fully paid-up equity shares of INR 1 each for every 100 fully paid-up equity shares of Zee Entertainment Enterprises. After closing, the new combined company will be publicly listed in India. According to the terms of the agreement, Sony is set to hold 50.8% in the merged entity, while domestic shareholders will hold over 47%. Zee promoter family is set to initially hold a 2.2% stake that will go up to 3.99%. There will also be provision for the promoter family to increase stake in the merged entity up to 20% subject to conditions including buying shares at market value. The closing of the transaction is subject to certain customary closing conditions, including regulatory, shareholder, and third-party approvals. Shareholder meeting of Zee entertainment will be held on October 14, 2022. As of July 29, 2022, Bombay StockExchange (BSE) and National StockExchange (NSE) approved the transaction. As of October 4, 2022, Competition Commission of India approved the transaction. As of October 14, 2022, ZEE Entertainment Enterprises shareholders approved the transaction.

Morgan Stanley (NYSE:MS), Mehta, Jaimin and Srinivas Balasubramaniam of KPMG Corporate Finance India acted as financial advisor, Shardul Amarchand Mangaldas & Co acted as legal advisor to Sony Pictures Networks India in the deal. Srinivas Balasubramaniam of KPMG Corporate Finance, JPMorgan Chase & Co. (NYSE:JPM) and The Boston Consulting Group, Inc., Corporate Finance acted as financial advisor, TriLegal Partners acted as legal advisor to Zee Entertainment Enterprises in the deal. RBSA Valuation Advisors LLP acted as buy-side valuation advisor for Sony Pictures.