The Economic Times daily newspaper is available online now.

    ZEE may get rerated on merger with Sony: CLSA

    Synopsis

    Reiterating a buy rating with a target price of ₹415, CLSA said that if the deal is sealed, ZEE's valuation is likely to return to historical highs of 30 times. Zee Entertainment's shares ended down 0.8% at ₹367.45 on Wednesday. CLSA said that Sony would have 51% ownership after the merger and would be able to appoint majority of directors.

    ZeeAgencies
    "ZEE is still in litigation with a large minority shareholder, which carries associated risks," said the brokerage.
    Mumbai: Brokerage CLSA said Zee Entertainment Enterprises' (ZEE) potential merger with Sony could be a rerating catalyst.

    Reiterating a buy rating with a target price of ₹415, CLSA said that if the deal is sealed, ZEE's valuation is likely to return to historical highs of 30 times. Zee Entertainment's shares ended down 0.8% at ₹367.45 on Wednesday.

    CLSA said that Sony would have 51% ownership after the merger and would be able to appoint majority of directors.

    The merged company would be bigger than sector leader Star India with a 33% market share in India TV viewership and its revenue in the 2023-24 financial year could touch $2.5 billion, said the brokerage. The likely profits could jump 2.5 times to $680 million, it said.
    Merger with Sony Could Trigger ZEE’s Rerating: CLSA
    CLSA said ZEE's proposed merger with Sony India requires several approvals including regulatory nod and also of 75% of ZEE's shareholders.

    "ZEE is still in litigation with a large minority shareholder, which carries associated risks," said the brokerage.




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in