ZEE hits 52-week low in strong market; stock tanks 54% thus far in CY2024
Source: Business Standard
Shares of Zee Entertainment Enterprises (ZEEL) hit a 52-week low of Rs 125.55, down 0.5 per cent on the BSE in Friday’s intraday trade, in an otherwise strong market. The stock of the television broadcasting and software production company was trading lower for a fifth straight day, down 8 per cent during the period.
At 12:09 PM, ZEEL was trading less than 1 per cent higher at Rs 127.40. In comparison, the BSE Sensex was up 1.2 per cent or 1,044 points at 84,229. On the National Stock Exchange (NSE), the stock hit an intraday low of Rs 125.60, trading close to its 52-week low of Rs 125.50 touched on June 4, 2024.
Thus far in calendar year 2024, the stock has tanked 54 per cent as against 16.5 per cent surge in BSE Sensex.
Since August 28, the stock has dipped 17 per cent after the company and its group company Bangla Entertainment reached “an amicable non-cash settlement” with Culver Max Entertainment, which operates as Sony Pictures Networks India (SPNI).
Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other. The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media & entertainment landscape, signifying the definitive conclusion of all disputes.
Meanwhile, on September 16, 2024, Star filed its Statement of Case before the London Court of International Arbitration (LCIA) Arbitral Tribunal, in which it has, inter alia, sought to declare that the Alliance Agreement between Star and the Zee Entertainment has been validly terminated by Star and damages to be determined as of the date of the Tribunal’s award (with such damages quantified, as at 31 August 2024 as proxy date of the award, at $940 million) along with costs, expenses and applicable interest until full payment.
However, ZEEL has rejected the $940-million claim filed by Disney-owned Star India regarding the termination of a cricket broadcasting agreement, the company said in an exchange filing on Wednesday.
“The arbitration is at its initial stage and the LCIA Arbitral Tribunal is yet to determine if the company is liable in any manner. The company will, on merits, strongly contest all unfounded claims by Star and reserves all its rights,” ZEEL said.
The dispute centres on an alliance agreement signed on August 26 2022 between Zee and Star India. The deal, valued at $1.4 billion, would have seen Star India license television broadcasting rights for International Cricket Council (ICC) events to Zee for four years. However, in January 2024, Zee withdrew from the agreement, claiming Star India had breached the terms of the contract. Zee also demanded a repayment of Rs 68.54 crore, as mentioned in their December-quarter earnings report.
Meanwhile, ZEEL today informed the stock exchanges that the senior management of the company will be having multiple one-to-one and group meetings with the investors from Wednesday, September 25, 2024 to Friday, September 27, 2024 in Singapore.
First Published: Sep 20 2024 | 12:42 PM IST
