'We wish to clarify...': Zee on report about SEBI scrutiny of Subhash Chandra's stake hike claims

Zee Entertainment Enterprises Ltd on Tuesday issued a clarification on news report claiming SEBI scrutiny of Zee group founder Subhash Chandra's stake hike claims. 

In a recent interview Chandra said that the promoters would, over a period, increase their stake in the company from the current 4 per cent to 26 per cent.

Moneycontrol reported on Tuesday that Securities and Exchange Board of India (Sebi) is examining whether Chandra's statements amount to violation of LODR (Listing Obligation and Disclosure Requirements).

"We wish to clarify that the Company is not aware of any information that has not been announced to the exchanges, which could explain the aforesaid movement in the trading. Further, the statement quoted in the above-mentioned news article does not represent a decision or proposal that has been considered or approved by the Board. The Company cannot on its own confirm or deny the above-mentioned new items and its source," said Zee in a stock exchange filing. 

The National Company Law Tribunal (NCLT) on Tuesday accepted a petition by a Zee Entertainment shareholder seeking the merger of its Indian entity with Sony, which was called off last week despite regulatory approvals.

The Mumbai-bench of NCLT issued a notice on a petition moved by Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises Ltd, directing Sony Pictures Network India, now known as Culver Max, to file a reply within three weeks.

Mad Men Film Ventures on Tuesday filed the petition requesting both ZEEL and Sony to implement the merger as it was approved by the NCLT in August 2023.

The tribunal did not agree to the arguments made by the counsel stating that the approval by NCLT was conditional and depended on various conditions, which may be fulfilled or waived off in writing.

NCLT has kept the next date of hearing on this matter on March 12.

Last week, the Sony Group Corp called off the merger with ZEEL following a stalemate over who will lead the merged entity.

This merger could have otherwise created a USD 10 billion media enterprise in the country.

The deal stipulated that the merger was to be completed before December 21, 2023, including regulatory and other approvals with a grace period of one month to complete the transaction.

With inputs from PTI