Zee has notified to the exchange that it plans an acquisition and a stock split. Zee also said it is also planning to hive off its education division into a wholly-owned subsidiary and get shares as compensation. The stock market welcomed the news, coming close on the heels of Zee's decision to consider splitting the face value of its shares, and Zee ended up 6.6 per cent on the Bombay exchange at Rs 4,477.70 a share.

The stock has jumped nearly 50 per cent in the last two weeks in anticipation ofa stock split announcement and on perceived gains from a planned merger with Zee Multimedia Worldwide, the holding company for the group's operations abroad.

Zee said the transfer of education division, subject to approvals, would enable the business to grow faster and achieve significant revenues by focusing on the business. "In order to achieve the business objectives of the education division, it is proposed that this division may be transferred to a separate wholly-owned subsidiary of the company as going concern," the firm said.

It said the value of the transaction will be determined by taking the depreciated value of its fixed assets net working capital. "The new company will pay the purchase consideration by issuing equity shares of an amount, equivalent to the amount calculated as above," the firm said. "The business approach of Zee Telefilms is more focussed on entertainment, information, technology and advertisement business," it said. Zee Telefilms makes entertainment films for the group'ssatellite television network while the division imparts education through television, learning centres and the internet.