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Zeel closes sports broadcast business sales deal with SPN with slight alterations
BENGALURU: The Subhash Chandra-led Zee Entertainment Enterprises Limited (Zeel) had informed the bourses on 28 February 2017 that it has closed the first phase of the transaction for the sale of its Sports broadcasting business with Sony Pictures Network India and its affiliates (SPN) on receipt of US$ 330 million out of a total consideration of $385 million.
The company has now informed the stock exchanges that since certain condition precedents relating to the closure of the second phase of the transaction were taking time, both the parties have mutually concluded the closure of the transaction upon Zeel’s receipt of remittance of US$ 36.32 million from SPN. The company has further informed that the adjustment to the consideration amount inter alia was mainly consequent to retention of a leasehold immovable property at Dubai and certain working capital adjustments of the sports business as per terms of the business. The leasehold immovable property had earlier formed a part of the transaction.
In August-end 2016, Zeel had informed the stock exchanges about the approval of its board of directors for the proposed sale and transfer of Zeel’s broadcasting business to SPN in an all cash deal. Zee’s Ten Sports Network channels that consisted a number of Sports channels that operated in several countries including the Indian sub-continent, Maldives, Singapore, Middle East.
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