Media conglomerate Zee Entertainment has acquired 100 per cent stake in two media entities, 9X Media and INX Music, in a Rs 160-crore cash deal.
Besides, the company has also bought 26 per cent remaining stake in Zee Turner Ltd for Rs 2.6 lakh, a 74 per cent subsidiary of the company. The remaining stake is held by Turner International India Pvt Ltd.
The board of Zee Entertainment Enterprise Ltd (ZEEL), in a meeting held today, approved acquisition of 100 per cent stake in 9X Media Pvt Ltd and INX Music Pvt Ltd from their existing shareholders, the company said in a regulatory filing.
ZEEL will acquire 91,453,000 equity shares of Rs 10 each of 9X Media for a consideration of Rs 155.20 crore.
Besides, as per the deal, ZEEL would acquire 13,39,556 equity shares of Rs 10 each of INX Music constituing 29.15 per cent stake for Rs 4.80 crore.
The remaining 70.85 per cent in INX Music stake is owned by 9X Media and therefore consequent to the transaction, INX will become a wholly-owned subsidiary of ZEEL.
"9X channels enjoy leading market shares in their respective segments and will benefit immensely from our network's strength to achieve higher growth potential and cost synergies," ZEEL MD and CEO Punit Goenka said.
The deal is expected to conclude in two months.
"The proposed acquisition by the company of 9X music channels would achieve significant cost synergies and expansion of portfolio of music channels of the company," ZEEL said.
9X Media operates five music channels - 9XM (Hindi), 9X Jalwa (Hindi), 9X Jhakkas (Marathi), 9XO (English) and 9X Bajao (Hindi).
On completion of acquisition, these channels will be added to ZEEL's current portfolio of 33 channels. 9X Media's popular bollywood news portal SpotboyE will also be part of this transaction.
ZEEL recently sold its sports channel Ten Sports to Sony Pictures Networks for USD 385 million in an all cash deal. It has been active in merger and acquisitions space.
INX Music is engaged in the business of broadcasting a Punjabi music channel 9X Tashan, under its wholly owned subsidiary Paul Entertainment.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)