Zee-Sony Merger Approved by NCLT, Paving Way For Creation of $10 Billion Media Company

It heard arguments from creditors, including Axis Finance, JC Flower Asset Reconstruction, IDBI Bank, Imax and IDBI Trusteeship.

By Press Trust of India | Updated: 10 August 2023 16:23 IST

Zee-Sony Merger Approved by NCLT, Paving Way For Creation of $10 Billion Media Company

Photo Credit: Reuters

In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses

Highlights

The NCLT, on July 11, had reserved its order on the merger
Both media houses approached the tribunal for sanctioning the merger
The process stopped at the tribunal when a few creditors raised objection

The National Company Law Tribunal (NCLT) on Thursday allowed the merger of Zee Entertainment Enterprises and Culver Max Entertainment (earlier known as Sony Pictures Networks India).

This order by the Mumbai bench, headed by H V Subba Rao and Madhu Sinha, will pave the way for the creation of a $10 billion (roughly Rs. 82,700 crore) media company, the biggest in the country.

The tribunal also dismissed all objections regarding the merger.

Rajinikanth-led Jailer Is Out Today in Theatres: Plot, Box Office Estimates, More

The NCLT, on July 11, had reserved its order on the merger after hearing objections from several creditors.

It heard arguments from creditors, including Axis Finance, JC Flower Asset Reconstruction, IDBI Bank, Imax and IDBI Trusteeship.

In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses.

Gran Turismo Takes a Meta Turn on Hollywood’s Newfound Video Game Craze

Both media houses approached the tribunal for sanctioning the merger after obtaining permissions from the National Stock Exchange, BSE and sectoral regulators such as the Competition Commission of India and the Securities and Exchange Board of India.

However, the process stopped at the tribunal when a few creditors raised objections. Several creditors of Essel Group raised objections against the non-compete clause added to the scheme.

NSE and BSE had informed the Mumbai bench of NCLT about two orders related to the Essel Group entities, where the promoters allegedly diverted funds from the listed entity for the benefit of their associate entities.

Meta Lets You See the Inner Workings of Its New AI Chatbot: Here's Why

This also included the Securities Appellate Tribunal (SAT) order against Punit Goenka barring him from holding a directorial position in any listed company.

SAT upheld Sebi the Securities and Exchange Board of India's (Sebi's) interim order which restrained both Zee Entertainment promoters Subhash Chandra and Punit Goenka from holding board positions in public listed companies for a year on account of alleged fund diversion.

According to the creditors objecting to the merger, the order has a direct bearing as one of the integral parts of the scheme of the merger is the appointment of Goenka as the Managing Director of the merged entity.

IT Ministry Launches Indian Web Browser Development Challenge: See Details

As there is a regulatory bar on Goenka holding such positions, the merger shouldn't go through, they submitted.

Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company's new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Zee, Sony, ZEE Sony merger, Zee Sony deal, NCLT, India, SEBI, National Company Law Tribunal, Zee Entertainment Enterprises, Culver Max Entertainment, Sony Pictures Networks India