Zee Entertainment Enterprises, one of the largest Indian media and entertainment companies, on Thursday approved the acquisition of film production and distribution business from Zee Studios. Formerly known as Essel Vision Productions, Zee Studios is a wholly owned subsidiary of the company.
"This is to inform you that the Board of Directors of the Company at the meeting held today i.e. Dec. 17, 2020, have approved the acquisition of film production and distribution business as a going concern, on a slump sale basis from Zee Studios (formerly known as Essel Vision Productions), a wholly owned subsidiary of the company, for a cash consideration, on such terms and conditions as contained in the Business Transfer Agreement ('BTA')," the company said.
"This transaction comprises the acquisition of the business undertaking pertaining to Film Production and Distribution business as a going concern, on a slump sale basis from Zee Studios. Turnover of Film production and distribution business as on Mar.31, 2020 stood at Rs 1,241.1 million," Zee Entertainment said.
"The acquisition of film production and distribution business would inter alia result in growth opportunities in line with the strategic growth opportunities in line with the strategic company," Zee Entertainment said.
It will take approximately two months to complete the acquisition, company said on Thursday.
Shares of the company declined Rs 6, or 2.59%, to settle at Rs 225.95. The total volume of shares traded was 1,606,115 at the BSE (Thursday).