Zee Tele three-way demerger on 18 December, 2006
13 Dec 2006
Mumbai: Zee Telefilms (ZTL) will be formally demerged into three entities from 18 December, 2006. The company has earlier received the approval from the Bombay High Court for the demerger of cable undertaking Wire & Wireless India (WWIL) and news and regional undertaking Zee News (ZNL).
The process of getting approval for the demerger of direct consumer undertaking (ASC Enterprises Ltd. to be renamed Dish TV India Ltd.) is underway.
Subhash Chandra, chairman of Zee, said: "The board of Zee had decided to restructure the various businesses. This would strengthen long-term business prospects of each individual business by providing focused management attention."
According to a statement from the company, from 18 December, 2006, the company will start trading as a demerged entity (renamed Zee Entertainment Enterprises), and two new companies will be independently listed.
Though the business of both WWIL and ZNL was earlier part of the company, they will be able to unlock greater shareholder value as independent companies, the statement said.
Shareholders of Zee Telefilms will receive 45 shares of ZNL and 50 shares of WWIL for every 100 shares held in the company. The companies are likely to be listed on January 2007.
The company will announce the record date for the scheme to take effect in the third or fourth week of December.
In the meantime, the demerged ZTL (including Dish TV) will continue to trade on the stock exchanges. A separate record date will be announced for the demerger of Dish TV.
