Zee-Sony merger gets NCLT green signal

11 Aug 2023 , 09:55 AM

The National Company Law Tribunal (NCLT) Mumbai bench accepted the merger proposal between Zee Entertainment Enterprises Limited (ZEEL) and Culver Max Entertainment (Sony) on Thursday.

The bench granted the merger application in an oral order.

After hearing all parties, the division bench of judicial member HV Subba Rao and technical member Madhu Sinha reserved its order in the merger scheme between ZEEL and Sony on July 10.

Several operational and financial creditors submitted objections to the NCLT for the Zee-Sony merger scheme. IDBI Bank, IndusInd Bank, and the Indian Performing Rights Society (IPRS) have signed an agreement with the company.

The Securities and Exchange Board of India (SEBI) has declined to overturn an interim order preventing ZEEL Chairman Emeritus Subhash Chandra Goenka and his son Punit Goenka from serving as directors or officers of publicly traded companies.

Sony and ZEEL inked comprehensive merger agreements in December 2021. Sony will indirectly own 50.86% of the combined firm, the founders of ZEEL will own 3.99%, and the remaining ZEEL shareholders would own 45.15%.

At around 9.51 AM, Zee Entertainment was trading 0.92% lower at Rs 279.97, against the previous close of Rs 282.35 on NSE. The counter rose to an intraday high of Rs 289.45.

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