Shares of ZEE Entertainment Enterprises Ltd will be in focus on Thursday after the company informed stock exchanges that it is in receipt of a communication from Culver Max Entertainment Private Limited (CMEPL) and Bangla Entertainment Private Limited (BEPL) that they will enter into good faith negotiations with a view to discuss the extension of the date required to make the merger scheme effective by a reasonable period of time.
"The company is now in receipt of a communication from CMEPL and BEPL that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered amongst the parties, the Company, CMEPL and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time," ZEE said.
Earlier Sony Pictures Networks India (SPNI) in a statement said ZEE’s notice to the NSE and the NSE on December 17 was an acknowledgement that it would 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,” SPNI said.
M Joshi, Founder MMJC & Associates said the outcome of the merger holds significant importance for ZEE investors. He noted that the regulatory action against ZEE promoters raised concerns on some critical issues of merger already agreed. "Such cases of M&As would be looked up as a precedent by corporates fraternity while doing due diligence for corporate restructuring and also by regulators to review existing regulatory framework," he said.
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