Zee Entertainment Enterprises Ltd (ZEEL) and Sony's India unit have agreed to withdraw all claims against each other related to their failed merger, removing a "key overhang" over the Indian media company, but analysts believe ZEEL's share price is unlikely to be rerated anytime soon.
Any meaningful rerating would happen if it finds a new partner or strategic investor, they said.
"The settlement of the merger dispute marks an end to a tumultuous journey of almost three years.
While this settlement does remove a key overhang, lack of any major strategic investor does not inspire confidence," said Pulkit Chawla, research analyst at Emkay Global Financial Services. The brokerage retained its 'reduce' rating with a target price of ₹150.
ZEEL and its group company Bangla Entertainment reached "an amicable non-cash settlement" with Culver Max Entertainment, which operates as Sony Pictures Networks India (SPNI), on Tuesday.
The companies withdrew all claims against each other and said that none of them would have any obligations or liabilities to the other.
Bu hikaye Business Standard dergisinin August 29, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin August 29, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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