zee share worth: D-Avenue gung-ho on Zee inventory as CCI approves merger with Sony

New Delhi: Shares of Zee Leisure zoomed as a lot as 6 per cent in opening commerce on Thursday after the corporate acquired conditional approval for the merger with Sony from the Competitors Fee of India (CCI).

The deal, introduced a 12 months in the past, acquired the Competitors Fee of India’s nod after the regulator accepted ‘voluntary treatments’ proposed by the events. The watchdog stated it has cleared the take care of some modifications.

CCI stated it has permitted the amalgamation of

(ZEEL) and Bangla Leisure (BEPL) with Culver Max Leisure (CME), with sure modifications.

The deal stays topic to relevant regulatory and different approvals, ZEEL stated. In a separate assertion, Sony Footage Networks India stated it’s delighted to obtain CCI approval for the merger.

Following the event, shares of Zee Leisure surged greater than 6 per cent to Rs 283.75, earlier than paring some beneficial properties to commerce at Rs 277.40 at 9.45 am. The scrip had settled at Rs 267.50 on Tuesday.

Market analysts stay constructive on Zee Leisure after the approval, anticipating that no main flagship channel could be shut after the merger as a result of content material overlap.

We imagine the events could provide to close channels however total income influence might be minimal as these channels could also be based mostly on a push demand and never pull demand by prospects, stated Karan Taurani from Elara Capital. He maintained a constructive stance on Zee.

Avenue analysts predict the ultimate CCI order to observe within the subsequent three weeks, which can present extra readability on the identical. Shareholders are scheduled to satisfy on October 14 for approval.

The method could take one other quarter and one can see the merged entity by the start of FY25, if all approvals fall throughout the given timeline, stated specialists.

Pankaj Pandey, Head Analysis, ICICIDirect stated, “We nonetheless have no idea the finer particulars when it comes to whether or not there shall be a drop in some form of GEC channels and regional channels however we now have a purchase score on the inventory.”

World brokerage agency CLSA can be constructive on the media main and believes that CCI approval for Zee and Sony merger is a giant constructive and would be the rerating catalyst for the inventory.

Sony, when merged with Zee, will checklist in India, holding a majority 51 per cent stake within the new entity and a money of $1.5 billion. “Zee inventory valuations are compelling and we suggest a purchase with a goal worth of Rs 316,” it stated.

(Disclaimer: Suggestions, options, views, and opinions given by the specialists are their very own. These don’t signify the views of Financial Instances)