Zee Entertainment shares surged over 4 per cent on Monday after CNBC TV18 reported that the company will sell its stake in Ten Sports to Sony for nearly Rs 2,000 crore. Zee has bought 50 per cent stake in Ten Sports at enterprise value of $114 mn in 2006. The deal is likely to be announced this week, the report said. With this deal Sony will have significant bulk in ths ports bouquet to challenge Star India.
At 2.59 pm, the shares of the company were trading 4.13 per cent up at Rs 528.50. The scrip opened at Rs 507.60 and touched a high and low of Rs 528.50 and Rs 505.30, respectively. Later, the scrip closed 4.32 per cent up at Rs 529.50.
The Bombay Stock Exchange has sought clarification from Zee Entertainment Enterprises Ltd with reference to news reports that said Sony is likely to buy Ten Sports from Zee Entertainment for about Rs 2000 cr.
According to sources as quoted by CNBC TV 18, Zee Entertainment will get relieved of nearly Rs 100 cr EBIT loss from Ten Sports business.
The FY16 sales of Ten Sports stood at Rs 631 crore (15 per cent of total sales). Ten Sports has 7 channels: Ten 1,2, 3 and all in HD plus Ten Golf.
Brokerage House Edelweiss Securities told CNBC TV18 that it sees positive impact on Zee Entertainment EPS post sale of loss-making sport business.