ZEEL allots 2.23 cr preference shares to DMCL's shareholders

Zee Entertainment Enterprises Ltd has allotted 2.23 crore preference shares to the shareholders of Diligent Media Corporation Ltd as part of demerger of media business undertakings from the latter.
The board of Zee Entertainment Enterprises Ltd (ZEEL) has issued 2.3 crore non-cumulative redeemable non-convertible preference shares of Re 1 each to DMCL's (Diligent Media Corporation Ltd) shareholders, the Essel Group firm informed the BSE.
ZEEL had announced that media business undertakings of DMCL would be demerged to be vested into itself. The undertakings comprise media and entertainment business, event management activities, TV channel licence and TV reality shows formats for game based shows.

ZEEL said as per the terms of issuance, the preference shares allotted are not proposed to be listed on any stock exchanges.
The Bombay High Court has already sanctioned the demerger scheme on September 12, 2014.
"Bombay High Court at the hearing held on September 12, 2014 had approved the Scheme of Arrangement between the company and DMCL and their respective shareholders and creditors, for demerger of media business undertaking of DMCL vesting with the company from the appointed date i.E. March 31, 2014," it added.
Shares of ZEEL were trading at Rs 300.75 per scrip during the post afternoon trade, down 0.51 per cent from its previous close.