NCLT issues order allowing ZEE to withdraw merger scheme with Sony

Zee Entertainment Enterprises Limited (ZEEL) has informed the bourses that the Mumbai Bench of the National Company Law Tribunal (NCLT), has passed an order, inter alia, allowing the withdrawal of the merger Scheme with Culver Max Entertainment (formerly Sony Pictures Networks India) and Bangla Entertainment (BEPL) and recall the sanctioned order dated August 10, 2023 passed by the NCLT in respect of the Scheme.

In August 2024, ZEE, Culver Max Entertainment Pvt. Ltd. (CMEPL) operating as Sony Pictures Networks India (SPNI), together with its group company Bangla Entertainment Pvt. Ltd. (BEPL), arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement.

As part of the settlement, the companies mutually agreed to withdraw all respective claims against each other. The companies also withdrew the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities.

On August 29, ZEE submitted a request to the Mumbai branch of National Company Law Tribunal (NCLT) to revoke the tribunal’s August 10, 2023 approval of the merger with Sony Group Corporation’s Indian media subsidiaries, Culver Max Entertainment and Bangla Entertainment. On August 30, ZEE withdrew the application and forfeited its rights to submit claims or counterclaims in the ongoing arbitration concerning the merger cooperation agreement dated December 22, 2021.

Also Read: Zee seeks to revoke NCLT order with new application