Zee shares drop 33% after Sony calls off deal

Zee Entertainment Enterprises Ltd. witnessed a drop of 33 per cent after Sony Group Corp. announced the termination of the $10 billion merger deal, Bloomberg reported on Tuesday.

Around 11 brokers such as Citigroup Inc., CLSA, and more have reduced their ratings on Zee in light of the termination.

“Zee’s stock valuation will likely de-rate,” CLSA analysts predicted. “Zee’s PE will slump back to 12x levels, seen prior to the Sony merger announcement,” CLSA added.

Sony terminated the deal on Monday due to disputes over who will run the merger, Reuters reported.