ZEE withdraws merger implementation application filed before Mumbai NCLT
Upstox
2 min read • Updated: April 18, 2024, 2:17 PM
Summary
ZEE said the decision will enable the company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders. The company also pointed out this decision will enable it to aggressively pursue all claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums.
Zee Entertainment Enterprises (ZEE) said in an exchange filing it has decided to withdraw the application filed before the National Company Law Tribunal’s (NCLT) Mumbai bench seeking merger with Sony Pictures Networks, known as Culver Max Entertainment.
According to a report, the merger between the two firms was announced in December 2021 but was later called off by Sony. Zee had approached NCLT Mumbai seeking the enforcement of the multi billion dollar merger scheme, which was approved by the tribunal in August 2023. Now, the firm has decided to withdraw the application stating the decision is based on the advice received by the board after a detailed consultation with legal experts.
“This decision will also enable the company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders. The board remains committed towards reviewing the strategic action-oriented steps taken by the management and providing timely guidance,” it said.
ZEE believes this decision will enable it to aggressively pursue all claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums.
R. Gopalan, Chairman of ZEE said the immediate priority for the company is to focus on performance and achieve its targeted goals for the future.
“We have reviewed the key steps taken by the management over the last few months that are result-oriented, and we believe that the company is well poised to chart a stronger growth trajectory. Hence, after seeking an independent legal opinion, the board has advised the management of the company to withdraw the implementation application filed before the Hon’ble NCLT,” he added.
Meanwhile, the company said its board has approved the streamlined organisation structure proposed by MD & CEO, Punit Goenka who will assume direct charge of the critical business verticals including the domestic broadcast business.
Shares of ZEE has fallen over 48% since the beginning of the year. The stock has lost nearly 28% in the last one year.