Zee Entertainment Enterprises Ltd. (ZEEL) issued a statement on March 16, refuting a recent news report claiming that the company was about to repay $10 million to IndusInd Bank to finalize a Sony deal. ZEEL called the report “speculative” and said that it is exploring several strategies, including settlement, to resolve the ongoing dispute with IndusInd Bank.
Following the report’s release, ZEEL’s stock jumped 9% during late trading hours on March 16, but the next day i.e. today, it fell 2.93% from the previous close, trading at Rs 200.65 on the NSE. So far in 2023, ZEEL’s stock has declined by 18%.
The News Published Yesterday
Zee Entertainment Enterprises Ltd’s shares rose 7% on Thursday following a report that the media company agreed to pay IndusInd Bank’s dues, and the lender is likely to withdraw the insolvency case against it. The development brings the company closer to completing a merger with a Sony Group unit to create a $10-billion media giant.
What’s the Whole Story
Earlier this year, IndusInd Bank initiated insolvency proceedings against ZEEL by approaching the bankruptcy court, a move that could have impeded the merger by halting all transactions, including asset transfers. However, the National Company Law Appellate Tribunal (NCLAT) stayed the proceedings and will hold the next hearing on March 29.
Ashwin Patil, the senior research analyst at LKP Securities, said, “NCLT approval shall be the final step towards completion of the merger. It will be immensely positive for the stock.”
Investors and market watchers will be closely monitoring the ongoing dispute between ZEEL and IndusInd Bank, as well as the progress of the Zee Sony merger. The coming weeks may prove crucial for ZEEL’s future.
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