Sony holds off on Zee merger, seeks extension beyond December 21st
ZEE has formally asked Culver Max Entertainment Private Limited (CMEPL) and Bangla Entertainment Private Limited (BEPL), both owned by the Sony Group Corporation, to consider extending the deadline for the implementation of the merger scheme. With the looming December 21 deadline, Zee has communicated via letter, proposing a collaborative effort to establish a mutually agreed-upon new cutoff date.
Sony India said, “ZEE’s notice to the Bombay Stock Exchange and the National Stock Exchange of India dated December 17 is an acknowledgement that they will not be able to meet the December 21, 2023, deadline to close the SPNI/ZEE merger.”
Furthermore, the notification activates a pre-existing contractual provision within the agreement, permitting both parties to engage in discussions regarding the potential extension of the deadline. Sony further said, “SPNI is required to start those conversations but has not yet agreed to a deadline extension. We look forward to hearing ZEE’s proposals and how they plan to complete the remaining critical closing conditions.”
“We hereby inform you that under the Merger Cooperation Agreement dated December 22, 2021, entered into amongst the company, BEPL and CMEPL, the company has requested CMEPL and BEPL to extend the date required to make the scheme effective, as per the terms of the Merger Cooperation Agreement,” ZEE said.
If the merger is successful, Sony would have an indirect ownership stake of 50.86% in the newly formed company. Other ZEE shareholders would collectively hold a 45.15% stake, and the founders of ZEE would retain a 3.99% ownership. As part of the merger, the combined entity is set to receive a capital injection of $1.5 billion from Sony.
Upon successful completion, the merger will give rise to a formidable multi-billion-dollar media entity, solidifying its prominent presence in television, OTT platforms, and content production. Financial figures for the fiscal year 2023 indicate that the combined revenue of ZEE and Sony amounted to nearly Rs 15,000 crore.
