ZEE-Sony merger gets NCLT's nod

The National Company Law Tribunal (NCLT) has given approval to the merger of Zee Entertainment Enterprises and Culver Max Entertainment (previously known as Sony Pictures Networks India), paving the way for the creation of a media behemoth. The verdict was given by the Mumbai bench of the Tribunal at a hearing held today. NCLT has also dismissed all objections.

The division bench comprising HV Subba Rao and Madhu Sinha had heard arguments from creditors on July 10, 2023, who had objected to the merger scheme proposed by Zee Entertainment Enterprises and Culver Max Entertainment. These included Axis Finance, JC Flower Asset Reconstruction, IDBI Bank, Imax Corp and IDBI Trusteeship.

In December 2021, Zee Entertainment and Sony Pictures agreed to merge their businesses.

The two media houses approached the NCLT for sanctioning the merger scheme following requisite permissions from the NSE, BSE and other regulators including the Competition Commission of India (CCI) and Securities and Exchange Board of India.

After ZEE and Sony approached the NCLT, several creditors of the Punit Goenka’s Essel Group objected to the non-compete clause that was added to the merger scheme. Janak Dwarkadas, the counsel representing Zee Entertainment Enterprises Limited (ZEEL), said the scheme of arrangement between ZEEL and Sony has been approved by 99.97 per cent of shareholders of the company as well as BSE, NSE and the CCI.

The tribunal had upheld SEBI’s interim order which restrained Zee promoters Subhash Chandra and Punit Goenka from holding board positions in publicly listed companies for a year due to alleged fund diversion.