ZEEL Cancels Merger with Culver Max and BEPL

13 Sep 2024 , 11:18 AM

Zee Entertainment Enterprises Ltd. (ZEEL) has announced the cancellation of its merger plan with Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India) and Bangla Entertainment Private Limited (BEPL).

On September 5, 2024, the National Company Law Tribunal (NCLT), Mumbai, approved the withdrawal of the merger order, permitting ZEEL to retract the scheme.

The decision follows a settlement agreement between ZEEL and its merger partners. ZEEL cited the need to resolve ongoing disputes and litigation as the primary reason for the withdrawal.

At the time of writing, shares of Zee Entertainment Enterprises Ltd. (ZEEL) are trading at ₹136.85 which is a 1.57% gain than the previous close. Zee Entertainment Enterprises Ltd. (ZEEL) has witnessed a total of 50% dip in the last one year, and almost 51% dip since the beginning of the year.

The merger, initially approved in August 2023, was intended to combine ZEEL’s market presence with Culver Max’s entertainment assets but faced numerous delays and legal issues.

ZEEL’s board formally decided to withdraw from the merger on August 27, 2024. The NCLT’s approval nullifies the previous merger agreement. As part of the settlement, ZEEL has agreed to contribute ₹50,000 to Bharat Kosh.