Merger deal still on, not aware of any board meet at Sony, says Zee

Zee Entertainment Enterprises has reportedly sought an extension from Culver Max Entertainment to complete $10 billion merger deal, the deadline for which ends on January 20. 

Zee in an exchange filing said it was not aware of any board meeting held or proposed to be held by Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited) (“Sony”), given that these are internal matters of Sony. 

Reports claimed Culver had called for a meeting to take a final call on the deal. According to an ET report, Sony's India arm has not responded to the request, suggesting that the deal may be "over". 

Zee and Sony had time till  December 21, 2023 to settle the deal but on December 20, Zee told the exchanges that it Sony had agreed to extend the deadline in good faith. "We wish to reiterate that the Company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger and is engaging in good faith  negotiations with Sony with a view to discuss the extension of the date required to make the
Scheme effective, by a reasonable period of time," Zee said in an exchange filing. 

"We would also like to state that the Company has always complied with its obligations under  the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and will continue to make disclosures in accordance with the same." 

Sony has not commented on the statement so far. Sony has been opposed to Punit Goenka's appointment as the MD and CEO of the merged entity since the Securities Exchange Board of India's (Sebi) probe continues to hang over his head. Goenka reportedly had offered to give up the role. 

Sebi last year alleged that Zee engaged in deceptive practices by falsely claiming the recovery of loans to hide private financing deals linked to Zee Chairman Subhash Chandra.