MUMBAI: A few months post Zee Media’s amalgamation with Essel Publishers that brought the English newspaper DNA under Zee Media, its sister company Zee Entertainment (ZEEL) has called for a meeting of its shareholders to approve the scheme of arrangement with Diligent Media Corporation’s (DMCL) media business undertaking (MBU).

The notice to shareholders says that the MBU conducts various events on women empowerment, education, automobiles and real estate.  It also consists of a non-news TV channel licence and certain registered intellectual properties for TV formats of various gaming-based shows.

The court convened meeting shall be held on 4 June. The scheme looks at the demerger of the MBU from DMCL and then vesting it with ZEEL. Equity shareholders of DMCL will be given preference shares by ZEEL in the ratio of one preference share of Re 1 of ZEEL for every four equity shares of Rs 10 each held in DMCL. The company says that  2,22,73,886 preference shares shall be issued in all.

Through this business, ZEEL is planning to give an impetus to its event management capabilities. Planned are events and game shows.

The scheme, post approval by shareholders, is subject to the approvals of the central government and the Bombay High Court. All statutory licences, permissions, approvals or consents relating to, vested with and/or held by DMCL will be with ZEEL. All DMCL employees will then be considered as ZEEL employees.

DMCL was formed in 2005 with a 50:50 JV between Essel Group and Dainik Bhaskar Corp (DB). In 2012, Essel Group bought out DB’s 50 per cent stake.

The entire DMCL is now under the two arms of Essel - Zee Media with DNA and Zee Entertainment with the MBU.