Zee-Sony merger gets delayed as former seeks more time; stock slips ~3%

18 Dec 2023 , 11:16 AM

The listing of the Zee-Sony merger appears to have been postponed for three to four months as Zee Entertainment wanted additional time before the merger with Sony Pictures Networks India Private Limited, currently known as Culver Max Entertainment Private Limited.

Previously, the amalgamated business was planned to be placed on the stock exchange in January of next year. It is now expected to be listed in March or April.

The merger will be completed on December 22, 2023, two years after the two media businesses signed a merger agreement on December 21, 2021. According to a BSE document, Zee has now asked that Sony extend the timetable in order for the merger scheme to be effective.

Negotiations between both sides might be concluded in the next three to four weeks, following which the MIB (Ministry of Information and Broadcasting) and record date, delisting/relisting procedure could take another six to eight weeks, said Karan Taurani, senior vice-president, Elara Capital.

According to several media reports, the battle between the two corporations over who will serve as CEO of the merged organization had brought the merger to its knees.

While Zee has insisted that its CEO Punit Goenka will lead the merged business, Sony is cautious of his selection owing to an ongoing inquiry by the Securities and Exchange Board of India (SEBI).

Following this development, the company’s counter fell as much as 3% to intraday low of Rs 266.

At around 11.11 AM, Zee Entertainment was trading 1.51% lower at Rs 273.40, against the previous close of Rs 277.60 on NSE.

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