MUMBAI, SEPT 27: Zee Telefilms Ltd (ZTL) has decided on a swap ratio of 1:1 for its merger with Zee Multimedia. With this, the stake of promoters will go up to 70 per cent from around 50 per cent prior to the merger. The company had earlier announced a merger ratio of 1 share of Zee Telefilms for every 1.1 shares of Zee Multimedia.Addressing a press conference here today, chairman Subhash Chandra said the decision was taken at a board meeting here today. Detailing a mega expansion plan, Chandra said the company is looking at ``more than one partner'' for selling 10 per cent stake in the company. "We are talking to three to four partners and will offer depending on the value creation for the company,'' Chandra said.Asked whether Zee was talking to Time Warner Inc or Viacom Inc for selling the stake, he said: ``I am not talking to Time Warner or Viacom as reported in one newspaper,'' he said. ``We are looking at multiple partners who can bring software, financial and/or provide global access to ourchannels,'' he said.The board of directors of Zee Telefilms has decided that each of its Rs 10 face value shares will be divided into ten shares of one rupee each. Zee share crossed the Rs 5,000 mark and ended at Rs 5,118 on the Bombay Stock Exchange. ``Trading was stopped in Zee share after the scrip showed a maximum permissible rise of 8 per cent,'' said a broker. After the stock split, the equity capital of Zee will remain unchanged.The Zee board also approved the acquisition of 50 per cent stake from Star TV, a subsidiary of News Corp Ltd, in their joint ventures for $ 296.51 million, which was announced on Friday.This involves the acquisition of 50 per cent stakes in Winterheath Co Ltd, which owns Asia Today Ltd, from Star TV Ltd, in Siticable Network Ltd from Livewire Programme and Trading Co Pvt Ltd and Livewire and New Television (Mauritius) Ltd and in Programme Asia Trading Co Ltd from International Graphics Holding (Mauritius) Ltd.The company will pay 50 per cent, or $ 148.25 million, oftotal agreed price by an allotment of equity shares of Zee Telefilms on a preferential basis at an average price prevailing prior to September 24, 1999, it said. The balance will be paid in the form of debt notes or such similar instruments. The board also considered issuance of up to 10 per cent of expanded capital of the company on a preferential basis to a strategic investor, it said. An extraordinary general meeting of the company has been convened on October 25 to take necessary shareholders' approval, it said.
