Sony Has Not Yet Agreed To Extend Merger Deadline, Awaits Zee's Plan
Zee's Dec. 17 notice to the exchanges 'is an acknowledgement that they will not be able to meet' the Dec. 21 deadline to close the merger, says Sony.
Sony Pictures Networks India Pvt. said it has not agreed to extending the deadline for its planned merger with Zee Entertainment Enterprises Ltd. and awaits clarity from the Indian company after a report suggested the Japanese giant is unlikely to offer more time.
Zee's notice to the exchanges on Dec. 17 "is an acknowledgement 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 Pictures is "required to start those conversations but has not yet agreed to a deadline extension", the statement said. "We look forward to hearing ZEE’s proposals and how they plan to complete the remaining critical closing conditions.”
That means uncertainty persists about the one of the biggest deals in India's entertainment sector. The Mint earlier reported that Sony is unlikely to extend the deadline.
The sticking point is Punit Goenka's role as Zee's managing director after the market regulator barred him and Subhash Chandra from holding key managerial positions. While the Securities Appellate Tribunal dismissed SEBI's interim order, it asked the regulator to complete the investigation.
