The National Company Law Tribunal (NCLT) has reportedly dismissed an application filed by Phantom Studios India, which aimed to execute a merger plan between Zee Entertainment Enterprises (Zee) and Sony Group entities, Bangla Entertainment Private (BEPL) and Culver Max Entertainment (CMEPL).
According to reports, Phantom Studios is a shareholder of Zee, holding around 1.3 million shares worth Rs 50 crore.
The Mumbai bench of the tribunal held that the application, submitted by a minor shareholder to enforce the merger scheme, is no longer relevant as the companies had already withdrawn it.
It emphasised that the shareholder's right to enforce the scheme lapsed after the companies' boards approved the scheme's withdrawal, despite its minor shareholding.
In September, NCLT allowed Zee to withdraw its composite scheme of arrangement with CMEPL and BEPL after settling.
The NCLT had also recalled its previous sanction from 10 August 2023, which initially approved the merger.
In August 2024, Zee and Sony disclosed a comprehensive non-cash settlement, amicably resolving disputes related to the Merger Cooperation Agreement and the Composite Scheme of Arrangement.
According to Zee’s stock exchange filing, the merger sanctioned in 2023, was terminated by mutual consent.
Both companies agreed to withdraw all claims in their arbitration at the Singapore International Arbitration Centre and other legal proceedings, including those in the NCLT.
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