Zee sony merger: NCLT issues notice on Zee’s plea seeking implementation of Sony merger

The Nationwide Firm Legislation Tribunal’s Mumbai bench has issued a discover on Zee Leisure’s plea searching for the implementation of merger with Sony Photos’ India arm. The tribunal will take up the case on March 12.

Sony Group’s India items filed purposes earlier than the NCLT difficult the maintainability of Zee’s utility seeing implementation of merger, ET reported.

The NCLT has clubbed Zee’s plea with that of its shareholder Mad Man Movie Ventures, which has been termed as a proxy of the Indian broadcaster. Mad Man Movie Ventures beforehand approached the NCLT searching for implementation of the merger scheme between Sony and Zee.

The tribunal issued notices to Culver Max (previously often called Sony Photos Community India) and Bangla Leisure (BEPL) asking them to file a reply on Zee’s utility.

Following NCLT’s itemizing of the plea, Zee’s share costs climbed out of day’s low to commerce up 1.4 per cent as of 11:35.

NCLT’s Mumbai bench in August 2023 authorized the merger scheme, which might’ve doubtless created a $10 billion media entity. Nonetheless, Sony terminated the settlement in January following a sequence of delays. Insiders knowledgeable ET that lack of consensus over who would lead the merged entity was among the many the explanation why the merger didn’t undergo.ALSO READ: Zee-Sony deal breakers: Unmet deadlines, bitter emails and dissent over who’s boss

Following termination of an settlement by Sony Photos that might’ve created India’s largest broadcasting entity, Zee in January 2024 moved NCLT and Singapore Worldwide Arbitration Centre (SIAC) searching for an implementation of the merger settlement.

Zee urged the tribunal to nominate a panel comprising two administrators every from Zee and Sony corporations to supervise the implementation of the composite scheme of association.

The SIAC just lately rejected the plea by Culver Max Leisure and BEPL which sought restraining Zee from approaching NCLT or any company dispute tribunal for imposing the merger. Nonetheless, SIAC rejected the plea citing lack of its jurisdiction.

ALSO READ: SIAC denies Sony’s plea to restrain Zee from approaching NCLT for imposing merger

Sony Photos Leisure (SPE), a subsidiary of Japan-based Sony Group Company, Monday mentioned that it’s assured within the deserves of the matter. “We’re disenchanted within the choice by the Singapore Worldwide Arbitration Centre (SIAC). This choice is just a procedural one, ruling solely as as to if Zee Leisure can be permitted to pursue its utility with the NCLT,” it mentioned.

Whereas terminating the merger settlement, Sony alleged that Zee didn’t fulfill the merger circumstances and sough Rs 748.5 crore, or $90 million, as termination charge.

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