The ZEE – Sony Merger Could Take More Months To Take Shape (Image: x.com/@enterprises_zee,@Sony)
The merger of Zee Entertainment and Sony Pictures would be delayed further. The merger which was approved by the National Company Law Tribunal (NCLT) in the month of August 2023 was finalised in December 2021. A Sony statement on this said that the process of completion was still underway.
More on this, the statement said, “both companies continue to proceed with the necessary procedures to complete the transaction,” and that, “although the transaction was previously expected to close by the end of the first half of the fiscal year ending on March 31, 2024, based on the latest progress, it is currently expected to close in the months ahead. Sony continues to assess the impact of the transaction on its consolidated financial results,” reported the mint.
The merger, would bring in a combination of, over 70 TV channels, two video streaming services – Zee5 and SonyLiv, and two film studios – Zee Studios and Sony Pictures Films India. Sony Entertainment India had advanced the plan to acquire zee Entertainment Enterprises.
After the merger is completed, Zee will be Culver Max Entertainment, whose business name is Sony Pictures Networks India. The merger will also see ZEEL or Zee Entertainment Ltd. be de-listed from the stock exchanges, FTSE has highlighted, mint said. The effective dates of the merger, the final day of trading of the Zee Entertainment and the listing of Culver Max Entertainment have not been confirmed, as per FTSE Russell. On the merger, the shareholders would receive 85 shares of the merged entity for every 100 shares they have held in ZEEL, reported the Business Today.
On the objections of Zee-Sony Merger, the Axis Finance Ltd. had appealed that the merger was approved by the NCLT, despite of a regulatory order against the former managing director and chief executive officer of Zee Entertainment Enterprises Ltd., Punit Goenka. Objections were also raised by IDBI Trusteeship, IDBI Bank and JC Flowers ARC. However, the NCLT had dismissed the objections citing that they did not have any strong standing. The continuation of Punit Goenka as MD and CEO is one of the key conditions of the merger, reported the Business Today.
Sony is a huge Japanese conglomerate which has business operations spanning diverse segments including media. Zee is one of India’s key entertainment companies. The merger would create a massive entity which could become one of the largest media companies in India.
