Picture abhi baki hai! Zee shares rally 7% as Sony merger talks re-start
Zee Entertainment Enterprises Ltd (ZEEL) rallied over 7% to the day's high of Rs 192 on Tuesday as the media house re-initiated talks for a merger with Sony Group after the $10 billion deal was cancelled last month.
In a fresh dramatic twist, which is no less than an unending soap opera, Zee has re-engaged with Sony Group Corp in a last-ditch attempt to revive their merger,ET reported earlier today. According to the report, representatives from the two sides have held meetings across locations in Mumbai and efforts to salvage the deal have gathered momentum over the last fortnight.
Zee is expected to inform Sony over the next 24-48 hours if it’s willing to accept all terms and conditions, including conditions precedent (CPs), and go ahead, the report said.
Earlier on January 23, Zee shares had crashed 33% to a 52-week low of Rs 152.5 to record its worst single-day fall in history. Some bottom fishing was noticed in the next few days on expectations that Zee will draw other suitors for potential deals.
The proposed merger of Zee and Sony had led to a valuation re-rating of Zee in anticipation of an improvement in corporate governance and significant merger synergies.
The stock has been the subject of multiple de-ratings and sell calls since the Sony deal was terminated. CLSA had downgraded Zee to SELL from BUY with a revised target price of Rs 198, Nuvama also reduced its FY25E/26E EPS on Zee by 16%/24% and downgraded the stock to reduce rating with a target price of Rs 190.
Elara had downgraded Zee to sell
