On Tuesday, the National Company Law Tribunal (NCLT) accepted a petition from a Zee Entertainment shareholder, Mad Men Film Ventures, urging the Zee-Sony merger. Despite regulatory approvals, Sony, now known as Culver Max, called off the Zee-Sony merger last week. The Mumbai bench of NCLT issued a notice, instructing Sony Pictures Network India to respond within three weeks to Mad Men Film Ventures’ petition, which seeks the implementation of the NCLT-approved Zee-Sony merger from August 2023.
NCLT Rejects Arguments, Sets Next Hearing on March 12 in Zee-Sony Merger Case
The tribunal dismissed the counsel’s arguments that NCLT’s approval was conditional and subject to various conditions, which could be fulfilled or waived off in writing. NCLT scheduled the next hearing for March 12. Last week, Sony Group Corp called off the Zee-Sony merger due to a leadership deadlock in the merged entity. The abandoned merger had the potential to create a $10 billion media enterprise in the country.
The deal had specified that the merger must be completed before December 21, 2023, with regulatory approvals and other clearances, allowing a grace period of one month for the transaction’s completion.
Zee Stock Surges 8.9% Amid Reports of Emergency Arbitration Hearing in Singapore
In the morning, Zee stock experienced an 8.9% surge fueled by reports of an emergency arbitration hearing on the discarded merger set for January 31 in Singapore. CNBC-TV18 reported that on January 24, Zee took action by moving both the NCLT and the Singapore International Arbitration Centre against Sony Pictures.
As of 1:22 pm, the stock was trading at Rs 170.05, reflecting a 5.13% increase from the previous close. Zee’s public shareholders have written to the company, urging detailed information on the sequence of events leading to the termination of the merger agreement.
Source: https://www.moneycontrol.com/
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