Zee-Sony: Axis Finance, IDBI Bank drop appeals after NCLT revokes approval

Axis Finance, IDBI Bank, and IDBI Trusteeship Services have dropped their appeals against the Zee-Sony merger approval ¹. This move follows the National Company Law Tribunal (NCLT) revoking its initial approval of the merger on August 10, 2023.

Merger Termination

In September 2024, Zee Entertainment Enterprises Ltd. (ZEEL) formally withdrew its merger scheme with Culver Max Entertainment and Bangla Entertainment Private Limited (BEPL) after reaching a settlement. The NCLT sanctioned this withdrawal, allowing Zee to officially withdraw the scheme.

Zee and Sony reached a non-cash settlement in August 2024, resolving disputes related to the Merger Co-operation Agreement and Composite Scheme of Arrangement. As part of the settlement, both companies agreed to withdraw claims and legal proceedings, including arbitration at the Singapore International Arbitration Centre.

The Zee-Sony merger, initially approved in August 2023, was terminated by mutual agreement. ZEEL clarified this in its filing with stock exchanges. The merger's failure incurred significant costs for Zee Entertainment, totaling Rs 432 crore in merger-related costs during FY 2023-24 and FY 2022-23.