Zee Entertainment Enterprises has announced its merger with Sony Pictures Networks India (SPNI) with the aim of achieving higher growth and profitability.

“The shareholders of SPNI will hold a majority stake in the merged entity,” Zee said in a stock exchange filing on September 22. “The shareholders of SPNI will also infuse growth capital into SPNI as part of the merger such that SPNI has approximately $1.575 billion at closing for use in pursuing other growth opportunities.”

Punit Goenka will continue to be the managing director and CEO of the merged entity.Following the proposed merger, SPNI shareholders will hold a 52.93 percent stake in the combined entity and Zee shareholders will own a 47.07 percent stake.

In a Filing, Zee said, Zee board of directors, which met on September 22, approved the execution of a non-binding term sheet with SPNI in relation to a potential transaction involving a composite scheme of arrangement for the merger of the company and Sony India and infusion of growth capital by the promoters of Sony India into Sony India as part of the merger,

As a part of the transaction, Zee and SPNI will combine their linear networks, digital assets, production operations and programme libraries.

“ZEEL continues to chart a strong growth trajectory and the board firmly believes that this merger will further benefit ZEEL,” R Gopalan, chairman of Zee Entertainment, said in the statement. “The value of the merged entity and the immense synergies drawn between both the conglomerates will not only boost business growth but will also enable shareholders to benefit from its future successes.”