Zee Entertainment on Tuesday rejected media reports suggesting the cancellation of the $10 billion merger with Sony Pictures’ India division in a filing with the stock exchange. The Puneet Goenka-led company stated that the report is unfounded and contains factual inaccuracies.
“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,” the company said.
As on January 09, 2024, 3:10 PM IST Zee Entertainment Enterprises Limited share price was down by 7.48% at Rs 257.35.
On January 9, ET reported that Sony Group Corp is close to abandoning the proposed $10 billion merger between its India operations and Zee Entertainment Enterprises Ltd (ZEEL).
The announcement of the merger took place two years ago with the aim of establishing India’s largest broadcast company.
The failures in meeting the conditions precedent (CP) in legal terms have intensified the underlying dissatisfaction between the potential partners. They have been unable to reach an agreement on appointing ZEEL MD Punit Goenka as the CEO of the merged entity until he is cleared of allegations related to diverting funds from the publicly-traded firm to privately held companies owned by his family’s Essel Group, the report said.
In June, the Securities and Exchange Board of India (SEBI) accused Goenka and Zee Group Chairman Subhash Chandra of diverting company funds. However, in October, the Securities Appellate Tribunal lifted the ban on Goenka, which had prevented him from holding board positions in Zee Group companies.
The Goenka family holds a 3.99% equity stake in ZEEL.
The merged company was intended to possess more than 70 TV channels, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India), establishing itself as the largest entertainment network in India. The definitive agreement for their merger was signed in December of that year.
“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,” the company said.
As on January 09, 2024, 3:10 PM IST Zee Entertainment Enterprises Limited share price was down by 7.48% at Rs 257.35.
On January 9, ET reported that Sony Group Corp is close to abandoning the proposed $10 billion merger between its India operations and Zee Entertainment Enterprises Ltd (ZEEL).
The announcement of the merger took place two years ago with the aim of establishing India’s largest broadcast company.
The failures in meeting the conditions precedent (CP) in legal terms have intensified the underlying dissatisfaction between the potential partners. They have been unable to reach an agreement on appointing ZEEL MD Punit Goenka as the CEO of the merged entity until he is cleared of allegations related to diverting funds from the publicly-traded firm to privately held companies owned by his family’s Essel Group, the report said.
In June, the Securities and Exchange Board of India (SEBI) accused Goenka and Zee Group Chairman Subhash Chandra of diverting company funds. However, in October, the Securities Appellate Tribunal lifted the ban on Goenka, which had prevented him from holding board positions in Zee Group companies.
The Goenka family holds a 3.99% equity stake in ZEEL.
The merged company was intended to possess more than 70 TV channels, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India), establishing itself as the largest entertainment network in India. The definitive agreement for their merger was signed in December of that year.