Zee Entertainment Enterprises (ZEEL) has sought an extension of the current deadline to complete the merger with Sony India, which comes against the backdrop of differences between the firms as to who would head the combined entity. The request comes ahead of the December 21 deadline for completing the merger.
ZEEL, pursuant to the merger agreement dated December 22, 2021, has requested Culver Max Entertainment Private (CMEPL) and Bangla Entertainment Pvt (BEPL) and their shareholders and creditors to extend the date of the scheme to make it effective, it said in a regulatory update.
Earlier in September 2021, ZEEL, an Essel Group company promoted by media baron Subhash Chandra, announced plans to merge the firm with Sony Pictures Networks India, a subsidiary of Japan’s Sony Corp.
The merger would create a $10-billion media giant, with the combined entity owning over 70 TV channels, two video streaming services (Zee5 and SonyLiv) and two film studios (Zee Studios and Sony Pictures Films India). It would be the country’s largest TV network company with a 26% market share.
The companies had also got various approvals for the merger of ZEEL, BEPL (a Sony Group company) and CMEPL (formerly known as Sony Pictures Networks India Private).
However, differences cropped between ZEEL and Sony after the latter wanted the merged entity be run by its executive instead of ZEEL MD & CEO Punit Goenka, against the original terms of the merger agreement.
This came after Goenka and his father Subhash Chandra found themselves under regulatory glare from the Securities and Exchange Board of India (Sebi) over allegations of fund diversion. In October, the Securities Appellate Tribunal (SAT) had overturned a one-year ban on Goenka from holding directorships in Zee group companies.
Sony was pushing for its long-time India MD & CEO NP Singh to take over as the head of the merged entity. Well-regarded for his clean image, Singh, who prefers keeping a low profile, had steered Sony as its India CEO for a decade.
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