Deadline for $10-bn Zee-Sony merger extended by a month

Zee Entertainment Enterprises Ltd (ZEEL) and Sony Group Corporation have arrived at an agreement to extend the deadline for their $10 billion merger bay a month.

A day before the 22 December 2023 deadline for the entertainment companies to complete their merger, Zee informed stock markets that Sony has agreed to discuss an extension of the deadline.

“The company is now in receipt of a communication from CMEPL (Culver Max Entertainment Private Limited) and BEPL (Bangla Entertainment Private Limited) that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered amongst the parties, the company, CMEPL and BEPL, with a view to discuss the extension of the date for making the scheme effective by a reasonable period of time,” the regulatory filing said.

ZEEL had, on 17 December, written to Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited), seeking an extension of the merger deadline.

Zee Entertainment Enterprises Ltd and Sony Group have time until 21 January 2024 to close the merger.

The deal to merge their TV channels, streaming platforms and film assets of Zee and Sony, announced two years ago, got delayed over the management issue as Sony is opposed to current CEO and MD of Zee Entertainment Enterprises Ltd, Punit Goenka, continuing in his role in the merged entity, according to sources.

Sebi had, in August, barred Punit Goenka from becoming the director of any listed company. But that ban was lifted by the Securities Appellate Tribunal in October. SAT, however, had said Goenka would have to cooperate with any investigation by Sebi.