The Zee Entertainment-Sony Pictures merger is expected to be delayed further. The merger, which had been announced in December 2021 and was approved by the National Company Law Tribunal (NCLT) in August 2023, is still under process, Sony said in a statement.
“Both companies continue to proceed with the necessary procedures to complete the transaction,” says the statement. “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.”
Zee Entertainment Enterprises Ltd. (ZEEL) will be delisted from FTSE Global Equity indices following its merger with Sony Entertainment India. ZEE will be replaced by Culver Max Entertainment, which is Sony Pictures Networks India.
Culver Max Entertainment, whose business name is Sony Entertainment India, has put forward a proposal to acquire Zee Entertainment Enterprises. Following this acquisition, Zee Entertainment Enterprises is set to be removed from the stock exchange, as highlighted by FTSE Russell.
As per FTSE Russell, the merger’s effective date, the final trading day of Zee Entertainment Enterprises and the listing date of Culver Max Entertainment are yet to be confirmed.
Objections on Zee-Sony Merger
Axis Finance Ltd earlier told an appeals court that NCLT had approved the Zee-Sony merger in “contravention” of a regulatory order against Punit Goenka, former managing director and chief executive officer of Zee Entertainment Enterprises Ltd.
It is not only Axis Finance that is left dissatisfied by the merger process. IDBI Trusteeship, IDBI Bank and JC Flowers ARC have also raised objections. Their objections were, however, dismissed by NCLT, which stated that they lacked standing in the matter. On a related note, IDBI Bank has already contested the NCLT order in the National Company Law Appellate Tribunal (NCLAT).
