Zee Network Distribution now wholly owned subsidiary of ZEEL
Zee Entertainment Enterprises Ltd (ZEEL) has concluded the acquisition of the balance 26 per cent stake in the group’s subsidiary, Zee Network Distribution Ltd (earlier known as Zee-Turner Limited). Zee Network Distribution Ltd (ZNDL) has now become a wholly owned subsidiary of ZEEL from August 9, 2019.
Zee Network Distribution Ltd was incorporated on December 20, 2001 as a joint venture entity between ZEEL and Turner International India for engaging in the business of distribution of television channels of Zee Network and Turner Group.
The channel distribution business in the recent past was shifted to various entities and is currently housed under the company directly since 2016 and consequently, there have been no active operations of ZNDL since last few years, except for holding 50 per cent equity stake in Zee-Star distribution joint venture Media-Pro Entertainment, which discontinued the distribution business in 2014.
In view of this, the joint venture partners had mutually agreed to terminate the JV agreement with acquisition of Turner’s equity stake of 26 per cent (26,000 shares of Rs 10 each) in ZNDL by the company at par value aggregating to Rs 260,000, thereby making ZNDL a wholly owned subsidiary of the ZEEL.
ZNDL had no business turnover since past few years and during FY 2019, ZNDL had non-business income of Rs 4 lakh and net loss of Rs 11 lakh. The acquisition will, therefore, not have any material impact.
In pursuance of the in-principle approval granted by the Board of Directors of ZEEL on October 6, 2017, the company had entered into Share Purchase Agreement (SPA) dated March 31, 2018 for acquiring Turner’s stake subject to completion of certain Conditions Precedent (CPs), Accordingly, upon completion of all CPs, including inter alia change of name of the subsidiary after removing the word ‘Turner’ and admission of equity shares of the subsidiary for dematerialisation (as per regulatory amendments to Companies Act, 2013) the company has concluded the acquisition, making ZNDL a wholly owned subsidiary on August 9, 2019.