Zee and Sony's merger transactions were supposed to finish by March 2024 but are now expected to be completed in the months ahead.
Zee Entertainment Enterprises and Sony India's merger is expected to get delayed further, Sony has informed of the development through a statement. The deal had an initial deadline of September 2023. The merger was announced in December 2021 and had received the approval of the National Company Law Tribunal then.
“Both companies continue to proceed with the necessary procedures to complete the transaction", Sony Group said in a 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", it further added.
Zee Entertainment Enterprises Ltd. (ZEEL) will get delisted from the FTSE Global Equity indices after its merger with Sony Entertainment India. It will be replaced by Culver Max Entertainment, which is Sony Pictures Networks India, according to Mint.
Sony Entertainment India, also known as Culver Max Entertainment, has proposed to acquire Zee Entertainment Enterprises. According to FTSE Russell, Zee Entertainment Enterprises will no longer be listed on the stock exchange following the acquisition.
The effective date of the merger, as well as the final trading day of Zee Entertainment Enterprises and the listing date of Culver Max Entertainment, have yet to be confirmed.
The Zee-Sony merger has been a topic of dispute, with Axis Finance Ltd arguing in an appeals court that the National Company Law Tribunal (NCLT) approved the merger in violation of a regulatory order against Punit Goenka, former managing director and CEO of Zee Entertainment Enterprises Ltd.
Other parties, including IDBI Trusteeship, IDBI Bank, and JC Flowers ARC, have also raised objections to the merger process, but their objections were dismissed by the NCLT, citing their lack of standing in the matter. IDBI Bank has appealed the NCLT order in the National Company Law Appellate Tribunal.