Life Insurance Corporation (LIC) that holds about 4.9 percent in Zee Entertainment is yet to take a call on the Zee-Sony deal, sources told CNBC-TV18.
There have been reports, which spoke about LIC being in favour of the Zee Entertainment and Sony deal.
According to sources, no decision has been taken till now by LIC.
"The first priority for LIC is going to be the EGM and the run up to that EGM in terms of when it happens and how that process pans out before any decision can be taken on any potential merger or a transaction as far as Zee Entertainment is concerned," sources said.
Also, once the EGM is out of the way, there would be a series of factors that LIC would consider. The first and the most important thing is that they wouldn't just look at the proposal which has come from Sony. They are open to considering any counter offer which will be put on the table once the EGM is out of the way when it comes to that Zee entertainment transaction.
If there is any counter offer, they will weigh that offer and then a decision will be taken as to which transaction they want to go forward with and that will be purely decided on the basis of which transaction is in the best interest of a policyholder as well as the shareholders of LIC that is government.
According to sources, a couple of other factors which LIC will also consider is the financial strength of the new investor or the party which gives the counter offer. The corporate governance standards at the party will even be considered.