Mumbai: Zee Entertainment Enterprises Ltd. has requested Sony to extend the merger timeline (cut-off date) for completion which is coming to an end on Dec. 21, 2023.
Zee Entertainment in its disclosure to market regulators BSE and NSE, updated on composite scheme of arrangement amongst the company, Bangla Entertainment Private Limited (‘BEPL’), and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India.
Statement issued by Zee Entertainment said, “Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR Regulations’), we hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021 entered into amongst the Company, BEPL and CMEPL, the Company has requested CMEPL and BEPL to extend the Date required to make the Scheme effective, as per the terms of the Merger Cooperation Agreement.”
As the merger agreement signed in December 2021 is facing the deadline of Dec. 21, 2023, due to various hurdles posted by its creditors. However, Zee has now asked for an extension to the merger. The move reflects Zee’s intention to proceed with the merger with Sony despite the stalemate on leadership of the merged entity.
Sony’s response will be crucial for the future of the deal as the ongoing merger process between Zee and Sony is unlikely to get completed with in cut-off date. The fate of the deal will be determined based on the reaction from Sony while it has never showed any sign of negativity despite the slew of challenges faced during the past.
Media reports revealed that Punit Goenka has made his stand clear to Sony stating that the merger can go through only with him leading the merged company while Sony has asked him to take a non-executive role.
