ZEEL Board Chairman R Gopalan: “We will make counterclaims against [Sony] for breaches of the merger agreement”
After the sudden termination of the ZEE-Sony merger, R Gopalan, Chairman of the Board of Directors of ZEE Entertainment Enterprises Ltd (ZEEL) said they will take action against the breach in the merger agreement.
During an investor conference held on Monday, Gopalan said, “On merger failure with Sony, we reiterate that ZEE board and management were fully committed to the completion of the merger by undertaking some permanent and irreversible steps. The Board also had discussions with Sony during the process.
“Under the aegis of the Board, ZEEL management was engaged with Sony in good faith discussions to conclude the merger. The MD (Punit Goenka) was also agreeable to step down in the interest of the merger. However, in its communication dated 22 Jan 2024, Sony unilaterally terminated the merger co-operation agreement and initiated legal procedures. This move by Sony was premature as ZEEL was engaged in good faith negotiations and was taking the required steps in the course of the integration journey over the last two years to ensure that the scheme was implemented at the earliest.”
He further stated, “We will make counterclaims against Culver Max and BEPL for breaches of the merger agreement at the appropriate stage. The Board is focused on ensuring the highest standards of corporate governance, compliances and process controls.”
Related to this
.
ZEE board restructures top management
.
ZEE seeks arbitration after failed Sony merger
.
Punit Goenka: “It is time to move on” from Sony-ZEE merger
.
Supreme Court to hear IDBI Trusteeship plea against ZEE-Sony merger
He concluded by saying, “This management got the Sony deal to the table which was a great deal for the shareholders. We are fully cognisant that there is room for performance enhancement and we are putting through a revival plan by ZEEL and this is already being put into action to accelerate growth and enhance profitability.
“We believe that we will be on a much stronger footing financially in these few quarters and we are committed to the performance of the revival plan. The Board of Directors have decided to closely monitor the business model and plan presented by the MD/CEO of the company.”
