New Delhi: Zee Entertainment Limited (ZEEL) on August 9 acquired a balanced stake of 26% in Zee Network Distribution Ltd making it a wholly-owned subsidiary.
ZEEL’s board in a letter dated October 6, 2017, had intimated details of in-principle approval granted by the Board to acquire balance 26% stake in Company’s 74% Subsidiary Zee-Turner Ltd.
The company in a filing with the BSE said that upon completion of all Conditions Precedent including inter alia change of name of the subsidiary after removing the word ‘Turner’ to Zee Network Distribution Ltd, the Company has concluded the said acquisition and accordingly Zee Network Distribution Ltd has now become a wholly-owned subsidiary on and from August 9, 2019.
Zee Network Distribution Ltd,- ZNDL (earlier known as Zee-Turner Limited) was a Joint venture entity between the Company and Turner International India Private Limited (Turner) for engaging in the business of distribution of Television channels of Zee Network and Turner Group.
The Channel Distribution business in the recent past was shifted to various entities and is currently housed under the Company directly since 2016 and consequently there have been no active operations of ZNDL since last few years, except for holding 50% equity stake in Zee-Star Distribution Joint Venture ‘Media-pro Entertainment Private Limited’ (Mediapro), which discontinued the Distribution business in 2014.
In view of this, the Joint Venture partners had mutually agreed to terminate the Joint. Venture Agreement with the acquisition of Turner’s equity stake of 26% (26,000 Shares of Rs 10 each) in ZNDL by the Company at par value aggregating to Rs 260,000/-, thereby making ZNDL a wholly-owned subsidiary of the Company.