ZEE likely to take “appropriate legal action” after Sony pulls out of merger deal
ZEE Entertainment Enterprises Limited (ZEEL) has refuted claims made by Sony Pictures Networks after the latter pulled out of the merger deal.
Reports say that ZEEL had suggested a further six-month extension to finalise the deal. However, Sony Pictures Networks
R Gopalan, chairperson, ZEE Entertainment Enterprises, said, “The board of directors has taken note of Sony’s letters purporting to terminate the Merger Co-operation Agreement, on the company’s proposed merger with and into Culver Max Entertainment (Sony Pictures Network), invoking arbitration and seeking interim reliefs. We are evaluating the next steps and considering the appropriate course of action. The board has noted that the Company took all the required steps in the course of its integration journey over the last two years, to ensure that the scheme is implemented at the earliest. That said, the board would like to assure its stakeholders that the company will take all the necessary actions, in the best interest of all stakeholders, including taking appropriate legal action and contesting Culver Max and BEPL’s claims in the arbitration proceedings. The board has complete faith in the highly experienced senior management of the company and will continue to guide the team. We recognise and value the trust our shareholders and stakeholders place in us, and we express gratitude for their continued support.”
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ZEE approaches Sony to revive $10 billion merger talks
The proposed ZEE-Sony merger was announced in December 2021. The timeframe at the time given for the completion was 21st December 2023. However, the deadline was extended on the request of ZEE. At the time, Punit Goenka was to be the Managing Director and CEO of the new merged entity for five years. However, Sony rejected the plans over time due to a market regulator probe into Goenka.
