ZEEL completes acquisition of Turner’s 26% stake in erstwhile distribution JV
MUMBAI: Media conglomerate ZEEL has concluded the acquisition of balance 26% equity stake in Zee Network Distribution Ltd, formerly known as Zee Turner Ltd.
In October 2017, ZEEL had received in-principle approval from the board to acquire balance 26% stake in company’s 74% subsidiary Zee Turner Ltd. Accordingly, the JV, which was involved in the distribution of Zee and Turner channels, was disbanded.
Subsequently, the name of the company was changed to Zee Network Distribution Ltd. It is now a wholly-owned subsidiary of ZEEL from 9th August.
“We wish to inform you 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,” ZEEL said in a regulatory filing.
Zee Network Distribution Ltd ZNDL (earlier known as Zee-Turner Limited) was incorporated on 20th December 2001 as a JV entity between the company and Turner International India (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 JV partners had mutually agreed to terminate the JV 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.
ZNDL had no business turnover since past few years and during FY19 ZNDL had a non-business income of Rs 4 Lakhs and a net loss of Rs 11 lakh. The acquisition will therefore not have any material impact.