Had Subhas Chandra been clean in his past dealings I would have had Zee Tv as my top media pick. The stock benefits from the following aspects:

Could anyone plz tell me how many shares will i get when the cmpany restructures it business. Plz tell me if anyone is holding 100 shares what is the proportion of shares one will recieve.

Basantjee,

Zee seems to be moving the TV18 way, both in terms of price movements and demerging strategy. Do you see a greater story unfolding here?

Yeah , looks there is speulative trading going on but think 400 is a obvious target before demerger..

We started discussing zee at Rs 320 odd so the ones who have been trapped are the people who buy when the stock goes up - nothing to complaint there!

But should that be the reason for this steep a fall? Atleast one thing is proved from the latest cricket broadcast rights. Zee is not bidding insensibly and is not willing to pay any price for the rights. I will consider that to be a little positive for company as a whole. The value unlocking arguments are still there as much as they were earlier. Zee remains a good play with moderate management in the high growth entertainment industry.

They financed the company's money to the operator (KP) for jacking up the share price. Guess that says it all but as you said it is good that they are bidding with their thinking caps on this time.

Zee Telefilms Ltd (ZTL) has clarified the modalities of the restructuring of its news business and cable business for the benefit of its shareholders.

Subhash Chandra, Chairman, stated, "In keeping with its philosophy of building long term shareholder value, the Board of Zee had decided to restructure the various businesses. This would strengthen long term business prospects of each individual business, by providing focused management attention. From December 18, the Company would start trading as the demerged entity (to be renamed Zee Entertainment Enterprises Ltd) and two new companies would start their journey as independently listed entities. Though the business of both Wire & Wireless India Ltd (WWIL) and Zee News Ltd (ZNL) was earlier part of the Company, they would be able to unlock greater shareholder value as independent companies."

Zee Telefilms scheme of demerger

The scheme of arrangement had proposed demerging assets and liabilities of the following businesses:

• Cable distribution undertaking
• News and regional broadcasting undertaking
• Direct Consumer business undertaking

The date for the demerger is March 31, 2006, for the cable undertaking and the news and regional undertaking, while for the direct consumer business, the appointed date is April 01, 2006.

The company has already received approval of its demerger scheme by the Bombay High Court for the demerger of the cable undertaking and news and regional undertaking. The process of getting approval for the demerger of direct consumer undertaking is underway and is expected soon.

New business units
After the businesses are hived-off in to individual companies, shareholders of Zee would get shares in the four separate companies, which would be independently listed on stock exchanges. They are:

Zee Telefilms Ltd (to be renamed Zee Entertainment Enterprises Ltd (ZEEL), with 900 employees and revenues of Rs1,050 crore in FY2006

• ZEEL includes the global broadcasting business of the company, excluding the news and regional language channels
  
• The channels in ZEEL include Zee TV, Zee Cinema, Zee Sports, Zee Music, Zee Smile, Zee Jagran, Zee Premiere, Zee Classic, Zee Action, Zee Studio, Zee Cafe and Zee Trendz
  
• ZEEL includes the international broadcasting business of Zee in USA, Europe, Africa, Middle East and in Asia Pacific
  
• It includes investments in Zee Turner India Ltd, ETC Networks Ltd and Ten Sports channel

.Zee News Ltd (ZNL), with over 900 employees, accounted for revenues of Rs200 crore in FY 2006

• ZNL includes the broadcasting business of Zee Telefilms Ltd for the news and regional language channels
• The channels in ZNL include Zee News, Zee Business, Zee Marathi, Zee Bangla, Zee Punjabi, Zee Gujarati, Zee Telugu, Zee Kannada and 24 Ghante
• It also supplies content to the international broadcasting business of Zee in USA, Europe, Africa, Middle East and in Asia Pacific

Wire and Wireless India Ltd (WWIL) accounted for revenues of Rs150 crore in FY 2006. Revenues of WWIL are expected to grow rapidly in the coming years due to digitisation of cable and acquisition of last-mile connectivity

• WWIL includes the cable distribution business of Zee Telefilms, which was earlier under Siticable Network Ltd. WWIL is the largest multi system operator (MSO) in the country and has a connectivity of 6.7 million homes.
• WWIL operates 52 headends in 35 cities across the country. It has seven regional offices and over 500 employees.
  
• WWIL is embarking on a project of converting the analogue cable homes in India to digital cable. It plans to expand from current 35 cities to 66 cities in the next two years.

ASC Enterprises Ltd, to be renamed Dish TV India Ltd, accounted for revenues of Rs80 crore in FY 2006 and has over 800 employees.

• Dish includes the direct to home satellite broadcasting business, which was the first DTH operator in India and currently the largest with 1.6 million subscribers.
• Dish has revolutionized television viewing in India through its high quality digital service delivered directly to consumers' homes. It provides 160 digital channels and also offers many value added services to its consumers like electronic programme guide, parental lock facility, ability to record programmes, gaming channels, movies on demand, etc. It is expected to face competition from TataSky and MTNL's IPTV services

Share swap:
According to a communiqué to the stock exchanges, the company said that after the demerger shareholder with 100 shares in Zee Telefilms on the record date would receive:

• 100 shares in ZEEL along with
  
• 137 shares in demerged ZNL. Subsequently, ZNL would reduce its share capital by 67 per cent and therefore, 100 shares in Zee Telefilms would translate into net 45 shares in ZNL, implying effective shareholding of 80 per cent
  
• 50 shares in demerged WWIL, implying effective shareholding of 100 per cent
  
• 230 shares in demerged ASC Enterprises Ltd (Dish). Subsequently, Dish would reduce its share capital by 75 per cent, which implies that 100 share of Zee Telefilms would translate into net 57 shares in Dish, implying effective shareholding of 57 per cent.

What shareholders get
Shareholders in the demerged company would continue to hold the same number of shares as they currently hold in Zee Telefilms.

In addition to that, they would receive separate shares in three demerged entities, which will allow them to participate individually as well as collectively in the growth area of cable distribution, direct-to-home broadcasting, and news and regional channels.

The shares of the resulting companies would be listed on the stock exchanges in India, where Zee's shares are currently listed, thus providing liquidity to all shareholders.

Highlights:

• The appointed date for the demerger is March 31, 2006 and the scheme has become effective on November 22, 2006
  
• Zee Telefilms had earlier announced the book closure date (from 24 December to 28 December, 2006) for determining eligibility for issuance of equity shares (consequent to the scheme of arrangement) by ZNL and WWIL
  
• Shareholders of the company would receive 45 shares of ZNL and 50 shares of WWIL for every 100 shares held in the company.
  
• Both companies would be listed independently, after relevant approvals from the stock exchange. Listing is likely in January 2007
  
• Demerged ZTL (including the direct consumer business undertaking) would continue to trade on the stock exchanges.
  
• A separate record date would be announced for the demerger of direct consumer business of ZTL into ASC Enterprises Ltd, to be renamed Dish TV India Ltd (Dish).
  

will the sum parts will be higher than todays close

It wont go below 250 unless there is huge crash.

Anyone interested in Zee, may read this(I dont own it personally):

A: We would definitely enter into some of kind of acquisitions of last mile of cable operators. There would be only strategic acquisitions of MSOs because going forward, this business of MSOs is going to vanish. It will not be a viable business sitting as a MSO in between the broadcaster and the last mile cable operators.

We are talking to a number of strategic investors. But as we know that this business is still a very murky business, probably we would see the foreign strategic investors coming in the next 12 months from now.

Q: So how many homes do you expect to monetise out of this 7 million under the new formats of digitization, direct taxes etc? Give us some global examples of how this could be valued because the way homes are subscribed or monetised in India is very different from how they are monetised globally?

A: Our plan is from the current one million paid subscribers, we will reach to about 15 million subscribers by 2011. If one looks at the comparable economies, the monetisation by capital markets is anywhere between USD 300-400 per home.

Q: But they are very different revenues coming in from those paying customers, don’t they?

A: Yes, the revenues will be directly coming into WWIL from the customer’s homes.

A: The Zee Network, comprising of 25 channels, controls about 20% eyeballs. We are the Number One in terms of the overall eyeballs as a network. The mandate to the respective CEOs, which is in this case, there are six business units in two companies. First is general entertainment in Hindi language and English language and sports as one group. The second group is the eastern and western regional language channels.

The third group is the southern language channels. Fourth is the news and business side of the business. Fifth group is the modernization of all these groups into the international markets outside India and sixth group in these two companies is the digital media and convergence, which will look at exploiting the content created by these four respective groups into the newer form of distribution, which maybe IPTV, Mobile TV or any other format. So they should outgrow to about 35% YoY for the next five years as against the industry growth to be seen at 22-25%.

Q: Post demerger, although Dish TV is not going out yet, ex-Zee news and ex-WWIL, what would Zee deliver in terms of revenue and profits in FY07 to value the core residual business?

A: FY07 will probably be higher than consolidated FY06 numbers into these two entities.

A: It will be Rs 2,000 crore roughly for FY07 for both Dist TV and Zee Entertainment Enterprises.

Temasek has picked up 10% stake in Tata Sky for 250 cr valuing 5 month old tata sky at 2500 cr. Would Zee DTH get higher or lower value than Tata Sky?

Interesting Nikhil... but the so called advantage of Cable over DTH (by way of being able to offer video-voice-data all thru one wire) is a double edged sword... it also means that Cable Cos will have competition from Telcos .. if Bharti can offer a Broadband cable to home for you to browse net, can they not offer TV signals for you to watch the Test Matches?

Is there any possibility that ETC Networks gets merged with Zee Entertainment. Since Zee Entertainment holds 54% (approx) stake in ETC.