The Board of Directors at Zee Entertainment Enterprises Limited (ZEEL) has approved the acquisition of 100% stake in 9X Media Private Limited (9XM) and its subsidiary INX Music Private Limited (INX) from Rivendell PE LLC (formerly New Silk Route) and the other shareholders, for an all-cash deal worth Rs 160 crore. The acquisition is expected to be completed in 60 days.
ZEEL will be acquiring:
91,453,000 equity shares of Rs 10 each of 9XM at a total consideration of Rs 155.20 crore; and 13,39,556 equity shares of Rs 10 each constituting 29.15% equity stake of INX at a total consideration of Rs 4.80 crore. The remaining 70.85% stake in INX is held by 9XM, and hence it’ll become a wholly owned subsidiary of ZEEL.
9XM operates five music channels: 9XM (Bollywood), 9X Jalwa (Old Hindi), 9X Jhakaas (Marathi), 9XO (English), and 9X Bajao (Hindi Classics), and INX operates the music channel 9X Tashan (Punjabi). 9X Media’s Bollywood news portal, SpotboyE is also part of the deal.
Zee Turner Limited
ZEEL will also be acquiring the remaining 26% stake in its subsidiary company Zee Turner Limited (ZTL). ZEEL already holds a 74% stake in ZTL, which was incorporated in December 2001 as a joint venture between ZEEL and Turner International India Private Limited. ZTL has been inactive over the past few years and had registered zero turnover in the three previous financial years. Hence, now ZEEL will be buying out the remaining 26% stake comprising 26,000 equity shares of Rs 10 each for Rs 2.6 lakh. This deal is expected to completed in 30 days.
Digital subsidiaries merged
In August this year, Zee decided to merge its digital media and entertainment business undertakings of Zee Digital Convergence Ltd, including the Ditto TV and Ozee businesses, with the parent company ZEEL. In addition to this, it merged the online media business of India Webportal Private Ltd (which ran India.com and its affiliated websites) with ZEEL as well. It seems that instead of the companies being merged into the parent entity, the business undertakings are being transferred.
In June, ZEEL acquired the remaining 49% stake in subsidiary company India Webportal Private Ltd. (India.com) for Rs 197.18 crore (or $30.7 million). India Webportal is a joint venture between ZEEL and US-based digital media firm Penske Media Corporation (previously known as Mail.com Media Corporation or MMC). ZEEL bought the remaining stake from existing shareholders MMC Investments Holding Company II Ltd (44%) and Ashok Kurien (5%).