In a filing with the stock exchange on Tuesday, Zee Entertainment refuted allegations in the media that said the company had terminated the $10 billion merger with the India division of Sony Pictures.
The company that is run by Puneet Goenka has stated that the story is without foundation and contains factual errors.
“We wish to reiterate that the Company is committed to the merger with Sony and is continuing to work towards a successful closure of the proposed merger,” according to the organisation.
After receiving confirmation at 1:20 p.m., shares of Zee Entertainment, which had been trading at a loss of 8% at the opening, had recovered some of their losses and were trading at a loss of 4.80%.
The aforementioned merger was initially announced two years ago with the intention of becoming India’s most prominent broadcasting corporation.
In legal parlance, the failure to comply with what are known as conditions precedents (CP) has contributed to the simmering discontentment that exists between the suitors, who have been unable to reach a consensus on ZEEL MD up until this point. It is possible that Punit Goenka would continue to serve as the Chief Executive Officer of the amalgamated corporation until he is exonerated of allegations that he transferred funds from the publicly traded company to privately held businesses that are owned by his family’s Essel Group.
In June, the Securities and Exchange Board of India (SEBI), which is in charge of regulating the markets, made allegations that Goenka and Subhash Chandra, the chairman of Zee Group, were involved in the disbursement of company cash. Nevertheless, in October, the Securities Appellate Tribunal lifted the prohibition that had been placed on Goenka, which prevented him from holding board positions in firms that were part of the Zed Group.
Within ZEEL, the Goenka family holds a 3.99% ownership stake.
Over seventy television channels, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India) were going to be owned by the united organisation, which would make it the most extensive entertainment network in India. The merger agreement between the companies was finalised in December of that year, and it was signed by both parties.
According to a story that was published by ET on January 9, Sony Group Corporation is on the verge of abandoning its proposed merger of its India operations with Zee Entertainment Enterprises Ltd (ZEEL), which would have cost a total of ten billion dollars.
