<p>State insurer LIC will back Zee Entertainment Enterprises’ merger with Sony Pictures Networks India as it is “confident” about the deal’s advantages to Zee and its unmistakable “synergy”, <em>Livemint </em><a href="http://www.livemint.com/companies/news/lic-likely-to-back-zee-sony-merger-11634667453694.html" target="_blank">reported</a> quoting sources.</p>.<p>“LIC’s primary objective is to create value for policyholders. Corporate governance is indeed important, but as a shareholder in Zee Entertainment, LIC is aware of the state of affairs at Zee. LIC feels that the deal with Sony will create value for all shareholders, which is evident from the stock’s behaviour," one of the sources told the publication.</p>.<p><em>DH</em> couldn't independently verify the report.</p>.<p>LIC’s vote for the company is necessary as it holds nearly 5 per cent shares of Zee and its decision will influence the votes of Zee’s public shareholders.</p>.<p>The announcement of the merger proposal has sent Zee’s stock price soaring. The investment committee of LIC will take the final decision, but internally, LIC has discussed the deal and is in favour of it, the second source said.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/zee-accuses-invesco-of-double-standards-in-sony-merger-1040774.html" target="_blank">Zee accuses Invesco of double standards in Sony merger</a></strong></p>.<p>“The deal will ensure a sustained flow of cash to the combined entity from Sony Pictures’ parent. Considering the diversity of the content to be brought on TV channels and the OTT platforms, the combined entity’s ability to enhance margins will be higher. LIC has considered these factors before internally favouring the deal," the person added.</p>.<p>“With the combined TV portfolio (of Zee and Sony) spreading across all genres, it becomes a must-carry network. The digital platform will get a big boost with the deep content library and funnel. With the cash coming in (from Sony), it will give a lot of firepower to the combined entity to bid for upcoming sports and other content IPs," one of the sources was quoted as saying.</p>.<p>Zee needs the approval of at least 75 per cent of shareholders for the merger to go through. </p>.<p>Invesco, Zee’s single-largest shareholder with a 17.88 per cent stake, has proposed an overhaul of Zee's board. Zee said Invesco's demands were not motivated by a desire to serve the company's business or the public interest.</p>.<p>Invesco has objected to some terms of the Sony deal that give Zee's founding family, including Goenka, an option to increase their stake to 20 per cent from the current 4 per cent in an "opaque" manner that would disadvantage other shareholders.</p>.<p><strong>Check out DH's latest videos</strong></p>
<p>State insurer LIC will back Zee Entertainment Enterprises’ merger with Sony Pictures Networks India as it is “confident” about the deal’s advantages to Zee and its unmistakable “synergy”, <em>Livemint </em><a href="http://www.livemint.com/companies/news/lic-likely-to-back-zee-sony-merger-11634667453694.html" target="_blank">reported</a> quoting sources.</p>.<p>“LIC’s primary objective is to create value for policyholders. Corporate governance is indeed important, but as a shareholder in Zee Entertainment, LIC is aware of the state of affairs at Zee. LIC feels that the deal with Sony will create value for all shareholders, which is evident from the stock’s behaviour," one of the sources told the publication.</p>.<p><em>DH</em> couldn't independently verify the report.</p>.<p>LIC’s vote for the company is necessary as it holds nearly 5 per cent shares of Zee and its decision will influence the votes of Zee’s public shareholders.</p>.<p>The announcement of the merger proposal has sent Zee’s stock price soaring. The investment committee of LIC will take the final decision, but internally, LIC has discussed the deal and is in favour of it, the second source said.</p>.<p><strong>Also read: <a href="https://www.deccanherald.com/business/zee-accuses-invesco-of-double-standards-in-sony-merger-1040774.html" target="_blank">Zee accuses Invesco of double standards in Sony merger</a></strong></p>.<p>“The deal will ensure a sustained flow of cash to the combined entity from Sony Pictures’ parent. Considering the diversity of the content to be brought on TV channels and the OTT platforms, the combined entity’s ability to enhance margins will be higher. LIC has considered these factors before internally favouring the deal," the person added.</p>.<p>“With the combined TV portfolio (of Zee and Sony) spreading across all genres, it becomes a must-carry network. The digital platform will get a big boost with the deep content library and funnel. With the cash coming in (from Sony), it will give a lot of firepower to the combined entity to bid for upcoming sports and other content IPs," one of the sources was quoted as saying.</p>.<p>Zee needs the approval of at least 75 per cent of shareholders for the merger to go through. </p>.<p>Invesco, Zee’s single-largest shareholder with a 17.88 per cent stake, has proposed an overhaul of Zee's board. Zee said Invesco's demands were not motivated by a desire to serve the company's business or the public interest.</p>.<p>Invesco has objected to some terms of the Sony deal that give Zee's founding family, including Goenka, an option to increase their stake to 20 per cent from the current 4 per cent in an "opaque" manner that would disadvantage other shareholders.</p>.<p><strong>Check out DH's latest videos</strong></p>
