New Delhi [India], June 20 (ANI): Financial providers firm BofA Securities mentioned Zee Entertainment Enterprises Ltd’s (Zee) fundamentals are deteriorating on the again of three elements — weak enterprise, dangers on the merger entrance, and SEBI investigation. The brokerage didn’t give any ranking on the media group.
“We have a ‘No rating’ on Zee as we await visibility on the merger going through or not,” BofA Securities mentioned in a report Monday titled ‘Increasing investigation overhang and rising dangers of Sony merger?’.
“Competition in sports is also rising with Disney now looking to offer free streaming after JioCinema.”Further, it mentioned the continued investigation by market regulator SEBI is growing the company governance overhang on Zee.
The newest was when SEBI final week mentioned that Zee promoters diverted cash from the listed entity and barred Subhash Chandra and his son Punit Goenka from holding board /high government positions in listed corporations – doubtlessly stopping Goenka from being the CEO of the merged Zee-Sony entity, BofA Securities mentioned.
The report mentioned SEBI’s interim order in opposition to Zee promoters places dangers to the merger with Sony.
“It remains unclear in what direction the merger will go and would Zee promoters will be finally barred or not. However, the risks of the merger with Sony going through have increased. It also remains unclear if Goenka would be able to be the CEO of the joint entity,” it added.
The Competition Commission of India (CCI) in October 2022 granted approval to the amalgamation of Zee Entertainment Enterprises Limited (ZEE) and Sony. (ANI)