Zee-Sony merger update: NCLT to pronounce order on scheme today
Zee-Sony merger news: Last month, the division bench comprising judicial member HV Subba Rao and technical member Madhu Sinha reserved the order on the merger.
- Aug 10, 2023,
- Updated Aug 10, 2023 9:44 AM IST
The National Company Law Tribunal (NCLT) on Thursday will pronounce its verdict on the merger of Zee Entertainment Enterprises and Culver Max Entertainment. Culver Max Entertainment was previously known as Sony Pictures Networks India.
Last month, the division bench comprising judicial member HV Subba Rao and technical member Madhu Sinha reserved the order on the merger. The division bench heard arguments from creditors who objected to the merger scheme proposed by Zee Entertainment Enterprises and Culver Max Entertainment.
These included Axis Finance, JC Flower Asset Reconstruction, IDBI Bank, Imax Corp and IDBI Trusteeship. In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses.
The two media houses approached the NCLT for sanctioning the merger scheme following requisite permissions from the NSE, BSE and other regulators including the Competition Commission of India (CCI) and Securities and Exchange Board of India.
After Zee and Sony approached the NCLT, several creditors of the Punit Goenka’s Essel Group objected to the non-compete clause that was added to the merger scheme, according to a PTI report.
Janak Dwarkadas, the counsel representing Zee Entertainment Enterprises Limited (ZEEL), said the scheme of arrangement between ZEEL and Sony has been approved by 99.97 per cent of shareholders of the company as well as BSE, NSE and the CCI.
Bourses had informed the NCLT’s Mumbai bench about the two orders of the Essel Group entities, where the promoters allegedly diverted funds from the listed entity for the benefit of their associate entities. This also comprised the Securities and Appellate Tribunal (SAT) order against Punit Goenka which barred him from holding a directorial position in any company.
The tribunal had upheld SEBI’s interim order which restrained Zee promoters Subhash Chandra and Punit Goenka from holding board positions in publicly listed companies for a year due to alleged fund diversion.
The total value of claims that is raised by creditors, who are objecting to the scheme of arrangement, is Rs 1,259 crore, he said, adding that they are holding the merger to ransom.
Dwarkadas added total public shareholding of Zee is 96.01 per cent, of which 70 per cent has been held by public institutions. He further said that around 25.88 per cent is held by public non-institutions whereas promoters hold only 3.99 per cent.
(With PTI inputs)
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The National Company Law Tribunal (NCLT) on Thursday will pronounce its verdict on the merger of Zee Entertainment Enterprises and Culver Max Entertainment. Culver Max Entertainment was previously known as Sony Pictures Networks India.
Last month, the division bench comprising judicial member HV Subba Rao and technical member Madhu Sinha reserved the order on the merger. The division bench heard arguments from creditors who objected to the merger scheme proposed by Zee Entertainment Enterprises and Culver Max Entertainment.
These included Axis Finance, JC Flower Asset Reconstruction, IDBI Bank, Imax Corp and IDBI Trusteeship. In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses.
The two media houses approached the NCLT for sanctioning the merger scheme following requisite permissions from the NSE, BSE and other regulators including the Competition Commission of India (CCI) and Securities and Exchange Board of India.
After Zee and Sony approached the NCLT, several creditors of the Punit Goenka’s Essel Group objected to the non-compete clause that was added to the merger scheme, according to a PTI report.
Janak Dwarkadas, the counsel representing Zee Entertainment Enterprises Limited (ZEEL), said the scheme of arrangement between ZEEL and Sony has been approved by 99.97 per cent of shareholders of the company as well as BSE, NSE and the CCI.
Bourses had informed the NCLT’s Mumbai bench about the two orders of the Essel Group entities, where the promoters allegedly diverted funds from the listed entity for the benefit of their associate entities. This also comprised the Securities and Appellate Tribunal (SAT) order against Punit Goenka which barred him from holding a directorial position in any company.
The tribunal had upheld SEBI’s interim order which restrained Zee promoters Subhash Chandra and Punit Goenka from holding board positions in publicly listed companies for a year due to alleged fund diversion.
The total value of claims that is raised by creditors, who are objecting to the scheme of arrangement, is Rs 1,259 crore, he said, adding that they are holding the merger to ransom.
Dwarkadas added total public shareholding of Zee is 96.01 per cent, of which 70 per cent has been held by public institutions. He further said that around 25.88 per cent is held by public non-institutions whereas promoters hold only 3.99 per cent.
(With PTI inputs)
Also Read: RBI monetary policy: Gov Shaktikanta Das expected to hold rates at 6.50%; what experts say
Also Read: India's historic Digital Personal Data Protection Bill is one step away from becoming law
Also Read: Disney+ Hotstar loses another 12.5 million subscribers on IPL void