ZEE Entertainment Enterprises Ltd on Tuesday said that it has withdrawn the merger implementation application filed before the National Company Law Tribunal (NCLT), Mumbai bench. The implementation application was filed by ZEE on January 24, 2024, seeking guidelines on the implementation of the Composite Scheme of Arrangement between ZEE, Culver Max Entertainment Pvt. Ltd. and Bangla Entertainment Pvt. Ltd.
In a media statement, ZEE said the 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. This decision to withdraw the implementation application will enable the Company to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums," the statement read.
The company said the decision to withdraw the implementation application will enable it to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums.
The step taken by ZEE to withdraw the implementation application is based on the advice received by the Board after a detailed consultation with legal experts.
“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," said R. Gopalan, Chairman, ZEE.
Gopalan added: "The Board remains focused towards maximizing shareholder value, strengthening the Company’s claims in arbitration and enabling the Company to explore strategic opportunities.”
The NCLT on August 10, 2023, had approved the merger of Zee Entertainment and Sony Pictures Networks India, paving the way for the creation of a $10-billion media giant in the country.
In January 2024, the merger between Sony and Zee was called off due to disagreements over more than 20 compliance issues. The disagreement involved issues such as Zee's failure to dispose of certain Russian assets and its $1.4 billion cricket rights deal with Disney.
One of the major reasons the failed deal being derailed was the lack of consensus over who would head the merged entity. While ZEEL MD and CEO Punit Goenka earlier agreed upon as the candidate to be at the helm of the merged company, Sony reportedly sought a reconsideration after Goenka came under a SEBI probe.
Shares of Zee Entertainment Enterprises closed at Rs 147.70, up by 4.05%.