MIB, DPIIT nod for transfer of ZEEL’s digital publishing business to Rapidcube

The Ministry of Information & Broadcasting (MIB) and the Department for Promotion of Industry and Internal Trade (DPIIT) have given their approvals to Zee Entertainment Enterprises Ltd (ZEEL) for the transfer of the company’s Digital Publishing Business Division to Rapidcube Technologies through a business transfer agreement.

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In its notice informing the bourses ZEEL stated, “We wish to update that the Company has received the approval from Ministry of Information and Broadcasting and Department for Promotion of Industry and Internal Trade, as required under the press note 4 of 2019 dated 18th September 2019 and the provisions of Foreign Exchange Management Act, 2000.”

In its earlier communication dated December 17, 2020, ZEEL had informed the bourses that the Board of Directors of the Company at its meeting held on December 17, 2020, had considered and approved the transfer of the Digital Publishing Business Division of the company to Rapidcube Technologies through a Business Transfer Agreement.

In its communication, ZEEL had stated that the Digital Publishing Business Division of the Company is valued at Rs 637.7 million. Revenue contributed by the Digital Publishing Business Division for FY19-20 stood at Rs 328 million, constituting approximately 0.5% of the total standalone revenue of the company. Net worth contributed by this Digital Publishing Business Division for FY19-20 stood at Rs 632 million, constituting approximately 0.8% of the total standalone net worth of the company.

Rapidcube was incorporated on October 29, 2020, under the Companies Act, 2013, as a private company limited by shares and is the wholly-owned subsidiary of Zee Media Corporation Ltd.