Zee-Sony merger: Analysts say new entity may get listed by April 2024

The merger agreement between Zee Entertainment and Sony Pictures Networks India Private Limited dated December 21, 2021, was to be closed in two years, but it’s unlikely to go through by December 21 this year. Zee has proposed an extension of the deal to Sony. It may take three to four months more for the process to be completed.

Also Read: Zee requests Sony to extend timeline to complete merger

In an email response to Business Today’s queries, a Sony spokesperson said, “Sony is evaluating the request”.

According to Elara Capital, the negotiations between both parties could be resolved over the next 3-4 weeks, and the delisting/relisting process may take another 6-8 weeks. “We therefore believe that the merged company could get listed by March or April 2024,” Elara Capital said in a report.

Experts believe that the extension of the merger timeline between Zee and Sony is a positive sign and in line with the expectation that the probability of the merger going though remains high. “As per our assessment, extension in merger timeline won’t have a major regulatory hurdle, as the NCLT approval is not time-bound, and this is only a mutually agreed date between two parties subject to shareholder and Board approvals; further appeals filed by Axis and other lenders in NCLAT too won’t negatively impact merger, as NCLT approval is without any conditions,” Elara Capital’s Vice President Karan Taurani said.

Also Read: ZEE shares in focus as firm seeks extension of timeline to complete Sony merger

According to the report, both parties could be undergoing negotiations over the CEO issue, wherein Sony may not want Mr Punit Goenka as CEO of the merged company, until the outcome of SEBI investigation is known. “We continue to believe that there is a high likelihood of the merger going through without Mr Punit, unless SEBI outcome is his favour ; further, the outcome of SEBI investigation could take 8-12 months, until which Sony may not wait and will propose to appoint a new CEO,” the report said.