Zee Entertainment hits fresh 52-week high on sale of sports biz

The stock up 3% to Rs 544 after the company announced the sale of sports broadcasting biz to Sony for USD385 million.

Zee Entertainment Enterprises has gained 3% to Rs 544, its fresh 52-week high on the BSE, after the company announced that its board approved the sale of sports broadcasting business of the company to Sony for $385 million (approx. Rs 2,578 crore).

“The board has approved the sale and transfer of sport broadcasting business of the company currently held under/through two wholly owned non-material subsidiaries viz. Taj TV Ltd, Mauritius and Taj Television (India) Pvt Ltd. to Sony Pictures Networks India Private Limited and its affiliates at an aggregate all-cash considerations of USD 385 million,” Zee Entertainment Enterprises said in a release.

The sport broadcasting business contributed Rs 631 crore (net of inter-company transaction) constituting 10.79% of the consolidated revenue and a loss of Rs 37.20 crore during the financial year 2015-16.

At 12:18 pm, the stock was up 1.5% at Rs 537 on the BSE, as compared to 0.14% rise in the S&P BSE Sensex. A combined 2.35 million shares changed hands on the counter on the NSE and BSE.