Media major Zee Entertainment on Sunday said it has sought an extension in the December 21, 2023 deadline of its proposed merger with Culver Max Entertainment (CMEPL), formerly known as Sony Pictures Networks India.
Zee had approached Culver Max and Bangla Entertainment Pvt Ltd (BEPL) for an extension in the deadline to complete the proposed merger, which will create India’s biggest media conglomerate, according to regulatory updates.
“We hereby inform you that under 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,” Zee said.
CMEPL is an indirect wholly-owned subsidiary of Sony Group Corporation (SGC). BEPL is also an indirect wholly-owned subsidiary of SGC and a part of the SGC Group.
The proposed $10-billion merger of Zee, BEPL and CMEPL has received regulatory approvals from fair trade regulator CCI, bourses NSE and BSE, shareholders and creditors of the company.
In August this year, the Mumbai bench of the National Company Law Tribunal (NCLT) also gave a go-ahead to the merger of Zee and Culver Max Entertainment. As per the agreements, Zee MD and CEO Punit Goenka has to lead the merger entity.
However, according to some reports, now CMEPL is insisting on making way for its Sony Pictures Network head N.P. Singh.
This followed an interim order by Sebi barring Essel Group chairman Subhash Chandra and Goenka from holding the position of a director or key managerial personnel in any listed company. The market regulator took action after they were found diverting funds from the company.
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Shareholders of Zee Entertainment Enterprises Ltd have rejected the re-appointment of Vivek Mehra and Sasha Mirchandani as independent directors.
At the annual general meeting (AGM) of Zee held on Saturday, the two independent directors failed to get the requisite number of votes for their re-appointment.
While Zee had moved a special resolution for their continuance, a lack of support from public institutions saw them not receiving the requisite 75 per cent votes.
In a separate regulatory filing, Zee said its board has approved the appointment of Venkata Ramana Murthy Pinisetti, Shishir Babubhai Desai and Uttam Prakash Agarwal as additional directors in the category of independent directors of the company.
