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 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 on Friday 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 managing director and cheif executive officer 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).