Sony-Zee Merger Timeline Extended Amidst Regulatory Challenges

29 Sep 2023 , 02:33 PM

The merger between Culver Max Entertainment (Sony Pictures Networks India) and Zee Entertainment Enterprises (Zee) is facing delays, according to a statement from Japan’s Sony Group. Originally slated for completion by the end of September 2023, the merger’s timeline has been extended due to legal complexities involving Zee.

The National Company Law Tribunal (NCLT) granted approval for the merger in August, dismissing objections from various creditors against Zee. However, recent developments have disrupted the merger, including the Securities and Exchange Board of India (Sebi) imposing restrictions on Punit Goenka, preventing his board service in four Zee Group companies, including Zee Entertainment.

Goenka is also barred from directorship positions in entities resulting from the merger. The merger, initially announced in 2021, faced delays due to Sebi’s interim order, raising concerns about Goenka’s role pending an investigation into alleged fund diversion. The ongoing Sebi investigation is likely to further prolong the merger process, with a final decision expected only after the inquiry concludes.

For feedback and suggestions, write to us at [e-mail]