Zee Entertainment Shareholders Demand Transparency on Sony Merger Termination

29 Jan 2024 , 12:35 PM

A group of Zee Entertainment Enterprises Limited (ZEEL) public shareholders, including foreign portfolio investors (FPI), mutual funds, and retail investors, has written to the company seeking details about the events leading to the termination of the merger agreement with Sony Pictures Network.

The shareholders have specifically requested the public release of the contents of Sony’s termination letter, which reportedly cited instances of non-fulfillment of condition precedents (CP) by ZEEL in a 62-page document.

The letter was addressed to R Gopalan, Chairman of the board at ZEEL.

The shareholders are questioning the board about why it did not present the true nature of the negotiations with Sony, especially considering reports of strained relations between the two entities.

Despite reports suggesting challenges in the merger negotiations and the likelihood of Sony not extending the merger deadline, ZEEL had maintained that talks were on track.

Shareholders have incurred significant losses due to the merger being called off, prompting them to seek transparency and accountability from the company.

Zee Entertainment has taken legal action, moving the National Company Law Tribunal (NCLT) and Singapore International Arbitration Centre (SIAC) against Sony Pictures, seeking directions to implement the merger scheme.

The proposed amalgamation, which aimed to create a $10 billion media entity, was officially called off by Sony on January 22.

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