Zee-Sony merger is at risk after Sebi order, says BofA Securities

The merger between Zee Entertainment Enterprises and Sony Pictures Networks India (Sony) is at risk following directions passed by capital markets regulator Securities and Exchange Board of India (Sebi), BofA Securities has said in a note.

“The bull-case on Zee in our view was that after merger with Sony, the corporate governance and business momentum would improve, with the Sony management getting involved. But after Sebi’s interim order against Zee promoters, this puts risks to the merger with Sony,” the brokerage has said.