NCLT To Hear Zee-Sony Merger Plea Today
Last month, Sony terminated the $10-billion merger of its Indian arm with Zee Enterprises, saying that Zee did not meet the conditions precedent.
On Tuesday, the National Company Law Tribunal will hear a petition from Zee Entertainment Enterprises Ltd. regarding the recently terminated merger with the Indian subsidiary of Sony Group Corp.
Last month, Sony terminated the $10 billion merger of its Indian arm with Zee Enterprises, saying that Zee did not meet the conditions precedent—among them financial management and recovery of dues from the related party.
Moreover, on Jan. 30, the NCLT acknowledged a plea from Mad Men Film Ventures, a shareholder of Zed Entertainment Enterprises Ltd., regarding the halted merger with Sony Group Corp.'s Indian subsidiary.
Mad Men Film Ventures brought the matter before the NCLT, urging both Zee and Sony to proceed with the approved merger, which granted approval in August of the previous year.
The shareholder's representative advocated for the immediate execution of the merger, highlighting that the NCLT had already granted approval for the proposal.
However, Sony's legal representation contested this, referring to a conditional approval clause in the merger cooperation agreement. The clause specifies that NCLT's approval is contingent on various conditions, which can be fulfilled or waived in writing.
