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Moving forward with its proposed acquisition of the general entertainment channel (GEC) 9X from the INX Media, Zee Entertainment Enterprises Ltd (ZEEL) has received the approval of the share swap ratio from its Board of Directors in its meeting held on April 29, 2010.

In a filing with the BSE, ZEEL informed that its Board has approved the Scheme of Arrangement between the Company and INX Media, under the provisions of Section 391-394 of the Companies Act, 1956.

Following this 9X will be demerged from INX Media and merged into ZEEL, one of the leading media and entertainment entities in the subcontinent region. The proposed acquisition will be funded by issuance of new shares by ZEEL to shareholders of INX.

As per the arrangement agreed between the two organisation, the share swap ratio has been proposed at 1 (one) equity share of Re 1each of ZEEL for every 71 (seventy one) equity shares of Rs 10 each of INX held by the shareholders of INX, as on June 30, 2010. ZEEL will also take over the liability of Rs 600 million.

Remarking on the acquisition, Subhash Chandra, Chairperson, ZEEL, in a prepared statement says, "Zee Entertainment is a leading provider of entertainment content across genres. With this acquisition, we hope to be able to expand our presence in the Hindi GEC space. We will also explore the opportunity to take this content to our international markets. This move is part of our continuing efforts to improve long-term shareholder value."

"While Zee has a dominant presence in the Hindi GEC genre, we have been looking at an opportunity to add to our offering and create better value. This acquisition will allow us a good opportunity to exploit better synergies across the entertainment genre. We would continue to operate the channel under the 9X brand and look at improving connect with our viewers," commented Punit Goenka, Chief Executive Officer, ZEEL.

ZEEL had received in-principle approval for the acquisition of 9X in an earlier meeting held on April 20, 2010. The appointed date for the Scheme of Arrangement had been set as March 31, 2010 and the scheme is subject to necessary approvals from various statutory bodies.

In the release ZEEL mentioned that the fully diluted equity capital of the Company after the regional general entertainment channels (R-GEC) business acquisition, scheme of allotment of ETC Networks and the proposed acquisition of business of 9X will go up to 489.04 million.

Related Stories:

• ZEEL board gives approval to buy INX Media's GEC 9X
• ZEEL considering buying INX's Hindi GEC 9X