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Deepak Shenoy

22 Sep, 7 tweets, 2 min read

Zee says there is no open offer in a merger - even if effectively Sony is adding cash to buy 53% of the entity that will be merged with Zee.

Is the AGM called off? Asks a caller
This call is for the merger, we cannot comment on whether the EGM called (by Invesco/Oppenheimer) will be called off.

Means those folks haven't been brought on board for the deal?

Valuation: Sony will add 1.6 billion roughly - so around 12,000 cr. - to Sony India, and then they merge, and then Sony will own 53% of the merged entity.

Yesterday's mcap of Zee was 24,000 cr. This means the current 24,000 cr. = 47% of eventual company.(contd)

So post merger valuation is roundly 51,000 cr.
Meaning Sony india is valued at 27,000 cr - if Sony is adding Rs. 12,000 cr. that means the CURRENT Sony India is valued at 15,000 cr.

With the 30% upmove today, numbers are higher. But just saying.

This is also interesting - Sony will add 12,000 cr., give the Sony India brand, and let Punit Goenka continue as chief for another 5 years?

We should perhaps hear from Sony about this.

The Sony deal will involves a transfer of about 2% from Sony to the promoters as a compensation for non-compete.

SEBI is quite likely to demand an open offer by Sony to remaining Zee shareholders (at least 26%) Because this is a defacto takeover of the company.

Sony press release is here: sony.com/en/SonyInfo/IR… Nicely worded such that: Clearly Sony is in control, reiterates that Punit Goenka is to lead for now.

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