Zee Says Sony Has Agreed To Discuss Extending Merger Deadline
The deadline for the completion of the merger was set as Dec. 21.
Sony Group and Zee Entertainment Enterprises Ltd. have agreed to discuss the extension of the merger date.
Culver Max (formerly known as Sony Pictures Networks India Pvt.) and Bangla Entertainment Pvt. have agreed to discuss the extension of the merger date, an exchange filing said on Wednesday.
Zee Entertainment is now in receipt of a communication from Culver Max and Bangla Entertainment that they will enter into good faith negotiations as required under the merger cooperation agreement, it said.
The deadline for the completion of the merger was set for Dec. 21.
In a statement on Dec. 17, Zee Entertainment said that it has requested Culver Max and Bangla Entertainment to extend the timeline required to make the merger effective.
Meanwhile, Sony said that it has not agreed to extend the deadline for its planned merger with Zee, and that it awaits clarity from Zee after a report suggested the Japanese giant is unlikely to offer more time.
Zee's notice to the exchanges "is an acknowledgment that they will not be able to meet" the Dec. 21 deadline to close the merger, Sony Pictures said in a statement.
"The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline," Sony said.
The proposed merger has received regulatory approval from the Competition Commission of India, the NSE and BSE, shareholders and creditors of the company.
In August this year, the Mumbai bench of the National Company Law Tribunal also gave the go-ahead for the merger of Zee Entertainment and Culver Max Entertainment.
The Securities Appellate Tribunal dismissed SEBI's interim order barring Goenka from holding any key managerial positions and asked the market regulator to complete the investigation.
This followed an interim order by SEBI barring Essel Group Chairman Subhash Chandra and Zee Entertainment's MD and CEO Punit Goenka from holding the position of director or key managerial personnel in any listed company. The market regulator took the action after they were alleged to be diverting funds from the company.
According to the agreement, Goenka has to lead the merger entity. However, according to some reports, now Culver Max is insisting on making way for its Sony Pictures Network head NP Singh.
(With inputs from PTI)
