The six regional channels -- Zee Marathi, Zee Talkies, Zee Bangla, Zee Telugu, Zee Kannada and Zee Cinemalu, which were earlier under Zee News Ltd, will move to Zee Entertainment from January 2010
The board of directors of Zee Entertainment Enterprises Limited (ZEEL) and Zee News Limited (ZNL) has approved the de-merger of ZNL's regional entertainment business (R-GEC) to ZEEL. Following this, Zee Entertainment will get control over the six regional channels -- Zee Marathi, Zee Talkies, Zee Bangla, Zee Telugu, Zee Kannada and Zee Cinemalu – from January 2010.
During the earlier meeting held on October 23, 2009, the board of directors granted 'in-principle' approval for the merger of the R-GEC business of ZNL into ZEEL. In the meeting held yesterday, the board approved the Scheme of Arrangement between ZEEL and ZNL.
The proposed de-merger will be funded by issuance of new shares by ZEEL to shareholders of ZNL -- the share-swap ratio has been proposed at four equity shares of Rupee 1 each of ZEEL for 19 equity shares of Rupee 1 each held in ZNL, as a consideration for the de-merger of the R-GEC business undertaking.
In an official communiqué, Subhash Chandra, chairman, ZEEL says, "Zee Entertainment is already the leading provider of entertainment content across genres in Hindi and English languages. With the regional channels within its fold, Zee Entertainment will now have an unparalleled reach across the country in the fast-growing regional markets. This acquisition also provides ZEEL the opportunity to take the regional channels international and expand revenue streams further. This move is part of our continuing efforts to improve long-term shareholder value."
Meanwhile, Zee Entertainment has also approved the appointment of Punit Goenka as managing director of the company with effect from January 2010. Currently, he serves as a whole-time director and chief executive officer of ZEEL.
Goenka has held the position of CEO at ZEEL (the erstwhile Zee Telefilms) since 2008. Prior to that, he handled Dish TV, the direct-to-home television distribution arm of the Zee group. In the past, he was also head of the music division of Zee Telefilms.
Goenka says, "The reorganisation gives ZEEL a large growth opportunity and better control to exploit synergies across the entertainment spectrum. The benefits would accrue because of more effective cross-pollination of ideas and better bundling of channels for selling. R-GEC will bring strength to the company's operating performance from an already profitable business, immediately accretive to revenues and operating profits."
Goenka has participated in various intensive management education programmes, such as Young Managers Program at INSEAD, France and a programme on "Birthing of Giants" hosted by Young Entrepreneurs' Organization and MIT Enterprise Forum Inc., Boston, USA.