Sony Pictures Networks India (SPNI) on Tuesday said it has not yet agreed to a proposal by Zee Entertainment Enterprises Ltd to extend the deadline for their merger beyond December 21.

Sony put the ball on Zee’s court by stating it wants to hear from the Indian entity on how it plans to complete the remaining critical closing conditions.

Last Sunday, Zee said it has requested Sony for an extension to the December 21 deadline.

Sony’s statement led to the shares of Zee facing selling pressure on fears the merger may fall apart. The Zee scrip settled at Rs 271.65 on the BSE, a fall of 3.17 per cent over the last close.

In a statement, SPNI said Zee's notice to the BSE and the NSE on December 17 seeking an extension of the merger deadline is "an acknowledgement that they will not be able to meet the December 21, 2023 deadline to close the SPNI/ZEE merger".

The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline.

"SPNI is required to start those conversations but has not yet agreed to a deadline extension," it disclosed. ``We look forward to hearing Zee's proposals and how they plan to complete the remaining critical closing conditions," Sony said.

While Sony did not elaborate on the closing conditions, it is unclear if it is still insisting on the reported replacement of Punit Goenka as the MD and CEO of the merged entity.

Goenka who heads Zee is not agreeable to the proposal.

Meanwhile, with just 48 hours to go, the time is ticking on the mega-merger.

There were no comments from Zee on Sony’s latest move though backroom negotiations are believed to be on between the two parties.