Zee Entertainment shares rose nearly 3 per cent on Wednesday after the company informed bourses that its boards of directors has approved selling of its sports broadcasting business to Sony Pictures for $385 million (around Rs 2,600 cr). The company said in a release, “The Board of Directors of the company has approved the sale and transfer of the Sports Broad Broadcasting Business of the company, currently held under two wholly owned non-material subsidiaries viz Taj TV Ltd, Mauritius and Taj Television Pvt Ltd to Sony Pictures Networks India Private Ltd and its affiliates at an aggregate all-cash consideration of $385 million and in connection with this transaction, the company and its subsidiaries have today executed relevant binding agreements.”
Zee Entertainment share price was trading 1.76 per cent up at Rs 538.50. The scrip opened at Rs 526 and touched a high and low of Rs 543.85 and Rs 523.85, respectively. Later, the scrip ended 1.97 per cent up at Rs 539.65.
The company release further added that the sports broadcasting Business contributed Rs 631 crore constituting 10.79 per cent of the consolidated revenue and a loss of Rs 37.20 crores during the financial year 2015-16.
Completion of the acquisition is subject to regulatory approval. The acquisition will add South Asia’s leading sports network to Sony Pictures Networks India (SPN)’s existing portfolio of channels. The TEN Sports channels being acquired include TEN 1, TEN 1 HD, TEN 2, TEN 3, TEN Golf HD, TEN Cricket, TEN Sports that operate in several countries including the Indian sub-continent, Maldives, Singapore, Hong Kong, Middle East, Caribbean. TEN Sports holds broadcast rights to major cricket boards (South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe).