[ad_1]
Zee Entertainment Enterprises Limited (ZEEL) had requested the Sony Group Corporation-owned Culver Max Entertainment Private Limited (CMEPL) and Bangla Entertainment Private Limited (BEPL) to extend the date required to make the merger scheme effective as the December 21 cut-off date looms large.
Zee reportedly wrote a letter to Sony to extend the cut-off date and jointly decide a new cut-off date.
In a media statement, Sony Pictures Networks India (SPNI) mentioned that it “is required to start those conversations but has not yet agreed to a deadline extension”.
In a regulatory filing on Sunday, ZEEL stated: “We hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021, entered into amongst the companies BEPL and CMEPL, the company has requested CMEPL and BEPL to extend the date required to make the scheme effective, as per the terms of the Merger Cooperation Agreement.”
SPNI reverted to the statement saying, “The notice dated December 17 is an acknowledgement that they will not be able to meet the December 21, 2023 deadline to close the SPNI/ZEE merger. We look forward to hearing ZEE’s proposals and how they plan to complete the remaining critical closing conditions.”
The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline.
After the merger, Sony would indirectly own 50.86% of the new company, while other ZEEL shareholders would hold a 45.15 per cent stake and the ZEEL founders would hold 3.99%. The merged entity will get a fund infusion of $1.5 billion from Sony.
Once completed, the merger will lead to the creation of a multibillion-dollar media powerhouse with a leading position in TV, OTT, and content creation. The FY23 financials show that ZEEL and Sony’s combined revenue was almost Rs 15,000 crore.
The cut-off date for concluding the merger is December 21. Zee had inked a deal to merge with Sony’s India Culver Max Entertainment in December 2021. While the merger has received all the requisite approvals, differences have cropped up between the two over the CEO position.
[ad_2]
Source link