Zee asks Sony to push merger deadline once more

MUMBAI: Zee Leisure Enterprises has requested Sony Photos Networks India to push the deadline for a $10-billion merger once more after the primary extension lapsed on January 20. Sony is but to reply to Zee’s request.
The merger between Zee and Sony was purported to be concluded by December 21, 2023. However Zee requested an extension and Sony agreed.Accordingly, a 30-day extension until January 20 was included within the pact. It’s not recognized by what number of weeks Zee has sought the second timeline extension from Sony.
Based on the settlement, each the events can prolong the merger deadline thrice. If Sony decides in opposition to the deal, then it should pay a termination charge of $100 million to Zee. A Sony spokeswoman did not reply to calls and textual content messages despatched in connection to the report.
Zee has been in search of time to resolve the difficulty of whether or not its MD Punit Goenka would run the present on the merged firm. Based on the settlement inked in December 2021, Goenka is meant to steer the merged entity. Although Sony agreed to this clause, it modified its stand after Goenka bumped into regulatory troubles. Markets regulator Sebi is conducting an investigation in opposition to Geonka and Zee in a securities legislation violation case. A ultimate order on this matter is but to return out.
Amid the authorized troubles, Sony has been pitching its India head, N P Singh, as MD of the brand new entity. Nevertheless, Goenka has not accepted this suggestion. The developments come at a time when one other consolidation within the media and leisure sector is within the works as Reliance Industries’ Viacom18 and the India unit of Walt Disney mix their operations within the nation.
Zee has been reiterating that it’s dedicated to the merger and is continuous to work in the direction of its profitable closure amid experiences of Sony planning to name off the deal.