Zee terminates 9X Media acquisition deal, says certain conditions unmet

FILE PHOTO: Punit Goenka, managing director and chief executive officer, Zee Entertainment Enterprises
Entertainment network Zee Entertainment Enterprises Limited (ZEEL) has called off its deal with music broadcaster 9X Media citing non-completion of certain material conditions precedent.

In October last year, Punit Goenka-led ZEEL had entered into a definitive agreement to acquire 9X Media and INX Music from New Silk Route and other shareholders for an all cash consideration of Rs 1.6 billion.

“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),” ZEEL said in a filing to the BSE.

“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).

The company operates its Punjabi music channel 9X Tashan through a joint venture. Sandeep Bansal, who grew up as a cable TV operator, has a 34 per cent stake in the JV.