MUMBAI: Owing to non-completion of certain material conditions, Zee Entertainment Enterprises Ltd (ZEEL) has terminated its deal to acquire music broadcaster 9X Media.
ZEEL, on 6 October 2017, had entered into an agreement to buy 9X Media and INX Music from New Silk Route (NSR) and other shareholders for an all-cash deal of Rs 160 crore.
In a release to the BSE, ZEEL stated, “This is further to our communication dated October 6, 2017, providing relevant details of the proposed acquisition of 100% equity stake in 2 Media entities viz. 9X Media Private Limited and INX Music Private Limited (9X entities).”
“In this regard, we wish to inform you that the said acquisition deal has been terminated/called-off by the Company inter alia due to non-completion of certain material Conditions Precedent.”
9X Media, along with its subsidiaries, operates a bouquet of six music channels–9XM (Latest Bollywood), 9X Jalwa (Evergreen Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi), 9XO (English), 9X Bajao (Hindi Classics).
ZEEL was to acquire 91.45 million shares of Rs 10 each of 9X Media for a total consideration of Rs 155.2 crore. Furthermore, the company had also agreed to acquire 29.15 per cent stake in INX Music for Rs 4.8 crore.
Post the acquisition, INX Music would have become a subsidiary of the company since 9X Media holds 70.85 per cent stake in the company.
The acquisition was expected to be completed in 60 days as no government approvals were required.
The deal would have provided an exit to private equity firm NSR that owns close to 80 per cent stake in 9X Media.
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