Zee, Sony End Merger After Settlement; Axis, IDBI Withdraw Cases

Axis Finance, IDBI Bank and IDBI Trusteeship Services have formally withdrawn their petitions filed with the National Company Law Appellate Tribunal (NCLAT) concerning the merger of Zee Entertainment Enterprises (ZEEL) with Sony Pictures Networks India. These petitions were initially lodged against an earlier National Company Law Tribunal (NCLT) order approving the merger.

The NCLAT granted permission for the withdrawal, noting that the NCLT had already recalled its previous order from 10 August 2023 which had sanctioned the merger between Zee and Sony.

Earlier in September 2024, ZEEL officially withdrew its composite scheme of arrangement with Culver Max Entertainment (Sony Pictures Networks India) and Bangla Entertainment Private (BEPL) following an amicable settlement. The NCLT had approved Zee’s request for withdrawal, marking an end to the merger discussions.

The settlement resolved all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement between Zee and Sony. Consequently, the NCLT issued an order allowing Zee to withdraw the scheme as well as recalling its earlier order approving the merger in August 2023.

In a filing with stock exchanges, Zee Entertainment confirmed that the merger, initially sanctioned in 2023 had been mutually terminated due to the settlement agreement. The non-cash settlement has allowed both companies to resolve their differences without further legal complications.

As part of the settlement, both Zee and Sony agreed to withdraw all claims against each other, including ongoing arbitration at the Singapore International Arbitration Centre and various legal proceedings in the NCLT and other judicial forums.

On September 5, 2024, the NCLT Mumbai approved the recall of its earlier merger order, officially allowing Zee to withdraw its scheme.