Zee Ent acquires ETC entirely, demerges education biz

Zeel has acquired ETC Network entirely and demerged its education business which will be listed on the bourses as a separate entity. ETC Network was suspended for trading today. Post-merger, shareholders of ETC will receive 10 shares of Zeel for 11 shares of ETC.  The record date for this was fixed on September 17.

Zeel’s outstanding shares will increase to 489 million versus 484 million after the scheme of arrangement. Hence 5 million shares of Zeel will be issued to ETC.

Earlier Zee had also announced bonus in the ratio 1:1. Post bonus, Zeel’s shares will increase to 978 million. According to analyst, there could be an adjustment of share price of around 50%, so it could come down to Rs 147-150.

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