Zee to merge with Sony, under-fire Goenka stays in control

NEW DELHI: Ten days after two of its largest shareholders sought the removal of Zee Entertainment Enterprises MD Punit Goenka, the latter has struck a merger deal with Sony Pictures Networks India that keeps him in the driver’s seat. Zee will merge with Sony Pictures in an agreement that gives the former 47% in the combined entity.

The local unit of the $85-billion Sony Corp, Japan, will own 53%. Goenka and his family, who own 3.99% in Zee, will retain their stake in the merged entity even as other Zee shareholders including Invesco Oppenheimer Developing Markets Fund and OFI Global China Fund—which sought Goenka’s ouster—will see their stakes diluted.