ZEEL cancels 9XM deal

ZEEL will no longer acquire music broadcaster 9X Media due to non-completion of certain material conditions precedent.

On 6 October 2017, ZEEL had entered into a definitive agreement to acquire 9X Media and INX Music from New Silk Route and other shareholders for an all cash consideration of Rs 160 crore. The deal would have provided an exit to private equity firm New Silk Route (NSR) which owns close to 80% stake in 9X Media.

9X Media, along with its subsidiaries– 9XM (Latest Bollywood), 9X Jalwa (Evergreen Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi), 9XO (English), 9X Bajao (Hindi Classics). 

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As reported earlier, ZEEL was to acquire 91.45 million shares of Rs 10 each of 9X Media for a total consideration of Rs 155.2 crore. Further, the company had also agreed to acquire 29.15% stake in INX Music for Rs 4.8 crore.

The company operates its Punjabi music channel 9X Tashan through a joint venture. Sandeep Bansal, who grew up as a cable TV operator, has a 34% stake in the JV. With ZEEL taking over the entire business, the JV will get dismantled.

Post the acquisition, INX Music would have become a subsidiary of the company since 9X Media holds 70.85% stake in the company.

The acquisition was expected to be completed in 60 days as no government approvals were required.

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