NCLT Approves Zee-Sony Merger In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses
By Teena Jose
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The National Company Law Tribunal (NCLT) on Thursday approved the merger scheme of India's homegrown entertainment company Zee Entertainment Enterprises with Culver Max Entertainment (erstwhile Sony Pictures Networks India or SPNI).
This order by the Mumbai bench, headed by HV Subba Rao and Madhu Sinha, reportedly will pave the way for the creation of a $10-billion media company. The tribunal also dismissed all objections regarding the merger, raised by some lenders including Axis Finance, JC Flowers Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship.
The order will be uploaded on the website by Friday, NCLT said. The bench had reserved the order on 10 July.
In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses. Both media houses approached the tribunal for sanctioning the merger after obtaining permissions from the National Stock Exchange, BSE, and sectoral regulators such as the Competition Commission of India and the Securities and Exchange Board of India.
However, the process stopped at the tribunal when a few creditors raised objections.
According to the creditors objecting to the merger, the order has a direct bearing as one of the integral parts of the scheme of the merger is the appointment of Goenka as the Managing Director of the merged entity.
Subsequently, after an order from the Securities Appellate Tribunal, the Sebi chairperson heard Goenka's reply in the ex-parte order passed by the regulator on 12 July. Sebi is expected to give its final order in the matter on Monday, 14 August. If Goenka gets relief from Sebi, it will ensure his position as the MD and CEO of the second-largest entertainment network in the country.
