Business News | Zee's Fundamentals Deteriorating on Weak Business, Merger Risks: BofA Securities
Get latest articles and stories on Business at LatestLY. Financial services company BofA Securities said Zee Entertainment Enterprises Ltd's (Zee) fundamentals are deteriorating on the back of three factors -- weak business, risks on the merger front, and SEBI investigation. The brokerage did not give any rating on the media group.
New Delhi [India], June 20 (ANI): Financial services company BofA Securities said Zee Entertainment Enterprises Ltd's (Zee) fundamentals are deteriorating on the back of three factors -- weak business, risks on the merger front, and SEBI investigation. The brokerage did not give any rating on the media group.
"We have a 'No rating' on Zee as we await visibility on the merger going through or not," BofA Securities said in a report Monday titled 'Increasing investigation overhang and rising risks of Sony merger?'.
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"Competition in sports is also rising with Disney now looking to offer free streaming after JioCinema."
Further, it said the continued investigation by market regulator SEBI is increasing the corporate governance overhang on Zee.
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The latest was when SEBI last week said that Zee promoters diverted money from the listed entity and barred Subhash Chandra and his son Punit Goenka from holding board /top executive positions in listed companies - potentially preventing Goenka from being the CEO of the merged Zee-Sony entity, BofA Securities said.
The report said SEBI's interim order against Zee promoters puts risks to the merger with Sony.
"It remains unclear in what direction the merger will go and would Zee promoters will be finally barred or not. However, the risks of the merger with Sony going through have increased. It also remains unclear if Goenka would be able to be the CEO of the joint entity," it added.
The Competition Commission of India (CCI) in October 2022 granted approval to the amalgamation of Zee Entertainment Enterprises Limited (ZEE) and Sony. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)