Zee Entertainment to go to NCLAT against NCLT order

24 May 2023 , 11:34 AM

Zee Entertainment is all set to challenge the order passed by National Company aw Tribunal (NCLT) on May 11 at National Company Law Appellate Tribunal (NCLAT), as per the reports of Economic Times.

The company will oppose on the grounds that it was not provided adequate opportunity to present its side of the argument, and the fact that the NCLT doesn’t have jurisdiction over issues like non-compete fees.

On May 11, NCLT Mumbai Bench passed an order to NSE and BSE to reconsider their respective initial approvals for the Zee-Sony merger and issue updated no-objection certificates before the next hearing, posing fresh obstacles for the proposed merger of the media companies.

The bench headed by judicial members HV Subba Rao and technical member Madhu Sinha, will now hear the case on June 16.

As per the proposal, Sony Pictures Entertainment will hold 50.86% of shares in ZEEL indirectly, making it the majority shareholder, while the founders of Zee will own 3.99% shares. Remaining 45.15% equity will be with the other shareholders of Zee, including the public. As per deal, Sony will also pay a non-compete fee of Rs 1,100 crore to the Essel Group promoters.