Sony Awaits Hearing Zee’s Proposals

Given the recent developments, Zee Entertainment has requested Culver Max Entertainment (formerly known as Sony Pictures Networks India) to postpone the date of the merger. However, in an official statement released by Culver Max today, it states that it has not accorded with the extension as yet. 

“Zee’s notice to the Bombay Stock Exchange and the National Stock Exchange of India dated December 17 is an acknowledgment that they will not be able to meet the December 21, 2023, deadline to close the SPNI/Zee merger. The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline. SPNI is required to start those conversations but has not yet agreed to a deadline extension. We look forward to hearing Zee’s proposals and how they plan to complete the remaining critical closing conditions,” the statement read.

With this, we also see the shares of Zee drop by 4 per cent today, amidst concerns about Zee's inability to meet the merger deadline. 

Media experts had expected this mammoth merger, accounting for $10 billion, to come to fruition in January 2024. 

Speaking of the delay in the merger, experts said the extension in timeline won’t have a major regulatory hurdle, as the NCLT approval is not time-bound.

“This is only a mutually agreed date between two parties subject to shareholder and Board approvals; further appeals filed by Axis and other lenders in NCLAT too won’t negatively impact the merger, as NCLT approval is without any conditions,” said Karan Taurani, Senior Vice President, Elara Capital.