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Zee Entertainment Approves Swap Ratio For ETC Networks Merger, Education Biz Spin-Off 12/29/2009 5:23 AM ET Zee Entertainment Approves In-Principle Scheme Of Amalgamation (RTTNews) - India's leading television media and entertainment company Zee Entertainment Enterprises Ltd., or ZEEL, said its board had approved the draft composite scheme of arrangement between the company, ETC Networks Ltd., Zee Learn Ltd.,--the new company--for the merger of ETC Networks with the company, and upon such merger, de-merger of Education Business from the company into Zee Learn of ZLL. The board also approved the share swap/share entitlement ratio for the merger and de-merger. The Mumbai-based company said the share swap/share entitlement ratio of 10:11 has been proposed as a consideration for the merger of ETC Networks, and 1:4 for the subsequent de-merger of Education Business into ZLL. The investments/shareholding of the company shall get cancelled as part of the merger scheme, it said. The board in its meeting on December 23 granted in-principle approval for the merger of ETC with the company and subsequent de-merger of the Education Business into a separate entity. The appointed date for the merger of ETC with the company is March 31 next year, and that for de-merger of Education Business into ZLL is April 1, 2010. However, the scheme is subject to necessary approvals of the the shareholders/creditors of the respective companies, the Bombay High Court and other statutory/regulatory authorities. The share exchange/share entitlement ratio was based on the valuation report submitted by an independent valuer, Grant Thornton India.
