In the aftermath of the terminated Zee-Sony merger, the promoters of Zee Entertainment Enterprises Ltd. are contemplating a strategic move to boost their shareholding without seeking external funds.
In an interview with Mint, Subhash Chandra, founder and promoter of Zee mentioned the company being a profitable and zero-debt one. He also said that the family intends to reclaim a 26 percent stake in the company. Acknowledging the fact that going back to that kind of shareholding would require funds, Chandra assured that they are determined to not raise money from outside. Instead they are getting the family to invest more in the company.
As for the merger fallout, Chandra said they were into it only because they wanted to do good for Zee and all its stakeholders.
However, according to Chandra, the business dynamics shifted as Sony began influencing operations, impacting Zee’s performance.
In the interview, Chandra disclosed settling claims worth Rs. 400 crores at Sony’s insistence, affecting the company’s financial landscape.
Chandra also made his stand clear on Punit Goenka being the right leader for the company and highlighted how moving him from the position would not have made the merger happen.
Contrary to speculation, Chandra clarified that offering Punit’s separation did not resolve the merger dispute, as Sony declined even a meeting to discuss the matter.