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MUMBAI:
ETC Networks Ltd, which runs a music and a Punjabi regional
channel, has approved its merger with Zee Interactive Learning
Systems Ltd. (ZILS) with effect from 1 April.
The
share-swap ratio has been fixed at two shares in ETC for each
held in Zee Interactive, as recommended by independent valuer
Dalal & Shah. Zee Entertainment Enterprises Ltd. (ZEEL)
currently holds 55.29 per cent in ETC.
After
the merger, ZEEL would hold 51 per cent in the combined entity.
It would be renamed as ETC Networks. "We decided in favour
of a reverse merger as ETC's profits and revenues have been
stagnating. Besides ETC is sitting on cash worth Rs 220 million
and this could be productively deployed in education which
is a growing business. We will also see tax benefits,"
says ZEEL company secretary Lakshmi Narayanan.
ETC's
shares would be delisted and relisted by January 2008, subject
to regulatory approvals. ZILS has interactive education systems
as well as learning centres.
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