On Thursday, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) approved the proposed merger of ZEE Entertainment Enterprises Limited (ZEEL) and Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited).

The company is expected to have 75 TV channels and two streaming video services, ZEE5 and Sony LIV, making it the second-largest entertainment network in India by revenue. In addition, it will include a digital content company Zee Studios and Sony Pictures Films India (Studio NXT).

The company noted that the stock exchange approval was a “firm and positive step” in the merger approval process.
In a statement, the company said: “These approvals enable the company to proceed with the next step in the overall merger process. The comprehensive plan of arrangement remains subject to applicable regulatory and other approvals”.

The companies will seek the National Company Law Tribunal (NCLT) and other regulatory clearances, which have been submitted to the Competition Commission of India (CCI).

After an exclusive negotiation period in which both parties conducted mutual due diligence, Sony and ZEEL signed a definitive agreement in December last year to incorporate ZEEL into Sony Pictures Networks India (SPNI).
ZEEL’s largest shareholders Invesco and OFI Global China Fund LLC opposed the takeover.

After the merger, SPE will hold 50.86% of the combined business, while Essel (Zee’s current holding company) will hold 3.99%. Existing ZEE shareholders will own 45.15% of the combined company.

Under the agreement, Sony Pictures will invest $1.575 billion in the newly combined business. ZEEL CEO Punit Goenka will serve as managing director and CEO of the combined company.