Zee Calls Report On Sony Planning To Call Off Merger 'Incorrect'

Zee Entertainment Enterprises Ltd. clarified that the reports about Sony Group Corp. cancelling the proposed merger with its Indian subsidiary is "baseless and factually incorrect".

"We wish to reiterate that the company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger," according to an exchange filing.

The exchange filing also stated that it would also like to state that the company has always complied with its obligations under the SEBI and will continue to make disclosures in accordance with the same.

Earlier NDTV Profit reported that, Punit Goenka and Zee Entertainment Enterprises are keen to close the merger with Sony Group Corp., according to people aware of the talks, even as a report said the Japanese group is planning to call off the deal.

The good-faith negotiations between the parties are still on and can go in any direction at this stage, the people told NDTV Profit on the condition of anonymity as talks are private.

Goenka is not keen on holding on to the chair as is being portrayed, the people said. The company is keen on implementing the scheme that shareholders improved, they said.

Any change in the scheme document will send it back to the regulatory desk and shareholders for reapprovals, the people quoted earlier said.

Sony Group's India unit is looking to cancel the deal due to a standoff over whether Goenka, chief executive officer at Zee, would lead the merged entity, Bloomberg reported on Monday, quoting unnamed people.

Sony plans to file the termination notice before a Jan. 20 extended deadline for closing the deal, saying some of the conditions necessary for the merger had not been met, the report said.

Zee shares tumbled as much as 14% intraday, and pared losses to trade at 3.99% lower compared to a 0.95% advance in Nifty 50 as of 1:26 p.m.