Last Updated: February 20, 2024, 11:48 IST
Zee-Sony Merger Talks Restart? Shares of Zee Entertainment Enterprises Ltd (ZEEL) rallied over 7 per cent to the day’s excessive of Rs 192 on Tuesday because the media home re-initiated talks for a merger with Sony Group after the $10 billion deal was cancelled final month. Despite the talked about rise, Zee shares have slipped round 35 per cent on a 12 months-to-date (YTD) foundation.
In a dramatic twist, Zee Entertainment (ZEEL) and Sony Group Corporation are re-participating in talks to salvage their $10 billion merger, studies claimed. Representatives from either side have held conferences in Mumbai, aiming to beat key variations and attain an settlement throughout the subsequent 48 hours, in keeping with a report by Economic Times.
Sony terminated the merger with Zee attributable to sure unresolved situations and management disputes, together with disagreements over CEO Punit Goenka’s involvement in regulatory points.
During an earnings name, Goenka had talked about that the termination was reviewed by his board and applicable steps have been taken in session with the authorized consultants. Zee even approached the National Company Law Tribunal (NCLT) to hunt instructions on the implementation of the scheme, he stated.
“I certainly wanted the merger to be implemented. In line with this aspiration, we even took several steps towards divestment or closure of profitable businesses in the domestic and international markets. I personally offered several proposals and solutions to Sony, to address their demands, but unfortunately, they remained unaccepted. Since the matter is sub-judice, I would not like to say more and let the law take its own course,” Goenka said.
On BSE, round 12.74 lakh Zee shares modified palms at present. The determine was decrease than the 2-week common quantity of 17.28 lakh shares. Turnover on the counter got here at Rs 23.96 crore, commanding a market capitalisation (m-cap) of Rs 17,846.45 crore.
The inventory was seen buying and selling decrease than the 5-day, 10-, 30-, 50-, 100-, 150-day and 200-day easy transferring averages (SMAs) however greater than the 20-day SMA. The counter’s 14-day relative energy index (RSI) got here at 43.46. A degree under 30 is outlined as oversold whereas a worth above 70 is taken into account overbought.
The firm’s inventory has a detrimental worth-to-fairness (P/E) ratio of 128.43 towards a worth-to-e book (P/B) worth of 1.74.
Earlier on January 23, Zee shares had crashed 33 per cent to a 52-week low of Rs 152.5 to document its worst single-day fall in historical past. Some backside fishing was seen within the subsequent few days on expectations that Zee will draw different suitors for potential offers.
The inventory has been the topic of a number of de-rankings and promote calls because the Sony deal was terminated. CLSA had downgraded Zee to SELL from BUY with a revised goal worth of Rs 198, Nuvama additionally decreased its FY25E/26E EPS on Zee by 16 per cent/24 per cent and downgraded the inventory to cut back ranking with a goal worth of Rs 190.
Elara had downgraded Zee to promote with a goal worth of Rs 170 whereas Motilal Oswal had additionally downgraded the inventory to impartial with a goal worth of Rs 200.
