Shares of Zee Entertainment Enterprises Ltd (Zee) witnessed volatility on Monday as uncertainty continued over the fate of its proposed merger with Culver Max Entertainment (CMEPL), formerly known as Sony Pictures Networks India (SPNI).

All eyes are now on Sony as to whether it would accept an extension sought by Zee.

The Zee scrip fell more than 4 per cent during intra-day trades to Rs 266.05. However, it recovered from these lows and closed at Rs 280.55, a gain of Rs 3.20 or 1.15 per cent on the BSE.

On Sunday, Zee had said that it has sought an extension in the December 21 deadline for the much awaited merger with CMEPL.

The company had disclosed that it has asked CMEPL and Bangla Entertainment Pvt Ltd (BEPL) for an extension in the deadline to complete the proposed amalgamation.

“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,” ZEEL said.

At the time of going to press on Monday, there was no communication from the company on whether Sony has accepted its request.

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.

In August this year, the Mumbai bench of the National Company Law Tribunal (NCLT) had given its approval to the merger.

Zee MD and CEO Punit Goenka is supposed to lead the merger entity. However, CMEPL is now reportedly insisting that Sony head N.P. Singh lead the merged firm.