Zee-Sony Merger: Zee-Sony merger worth $10 billion may be canceled. According to a Bloomberg report, Sony is now planning to withdraw from this proposed plan. Sony can send termination notice to Zee Entertainment before January 20.
There was agreement on extension
This deal was to be completed by 21 December 2023. According to the agreement, extension can be taken three times. Zee had then asked for an extension. After this, news came that Sony has agreed to extend the date of merger. The main issue was who would lead the new company.
According to the master plan, Punit Goenka was to become the managing director of the new entity. But Goenka got trapped in a legal battle in a bad way due to an order of SEBI.
Got relief from SAT
In June 2023, SEBI had banned Punit Goenka and Subhash Chandra from becoming board members of any company. This ban was imposed during the ongoing investigation into the misappropriation of funds.
In October, Goenka was successful in getting SAT to cancel the SEBI order.
There were objections on the merger, NCLT had given its decision in favor.
Rejecting all the objections, in August 2023, NCLT had given permission to the Zee-Sony merger. The tribunal was hearing the case since July 10.
It was said in the petition that NCLT, while canceling his application, did not give any reason, due to which this decision can be changed. According to the loan agreement and bank statement, Goenka’s companies had borrowed money from the applicant.
Challenge was also being faced from creditors
However, this merger has faced problems due to the creditors of Essel Group. These creditors include Axis Finance, JC Flowers Asset Reconstruction Company, IDBI Bank Limited, IDBI Trusteeship and Imax Corp.
The main issue in this dispute was the non-compete clause in the scheme. It said that Essel Group company Essel Mauritius will receive Rs 1,100 crore as non-compete fee from Sony Group company SPE Mauritius in exchange for which Subhash Chandra will agree not to compete with the formed entity.
