22 Nov 2017
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ZEEL allots 22.3 mn shares to DMCL as part of demerger scheme

MUMBAI: As part of its demerger scheme, Zee Entertainment Enterprises Ltd (ZEEL) has allotted 22.3 million (2.23 crore) preference shares to the shareholders of Diligent Media Corporation Ltd (DMCL).

ZEEL had decided to merge the media business operations of DMCL with itself, a move that will provide tax benefits and is aimed at driving synergies. DMCL’s media vertical owns a non-operational non-news TV channel licence, an event management business (Blood Donation Drive, Wheelcity Auto Expo 2012, ‘I Can’, Women’s half-marathon, etc), and TV reality formats for game-based shows.

“At the meeting held on 26 September, 2014 the board of directors of the company issued and allotted 22,273,886—6 per cent Non-Cumulative Redeemable Non-Convertible Preference Shares (Class A) of Re 1 each fully paid to the equity shareholders of DMCL as at the effective date i.e. 26 September,” the company said.

ZEEL said that as per the terms of issuance, the preference shares allotted in pursuance of the said scheme is not proposed to be listed on any stock exchanges.

Earlier on 12 September, the Bombay High Court sanctioned the demerger scheme.

ZEEL scrip closed the day at Rs 303.70 on the BSE, up 0.46 per cent from its previous close on Monday.

Also read:

ZEEL shareholders approve DMCL’s media biz acquisition

Zee Entertainment to absorb media biz of DMCL, swap ratio set at 1:4