The merger agreement between Zee and Sony dated 21 December 2021, was to be closed by 22 December 2023 (a two-year period); Zee has proposed an extension of the same with Sony.
According to Zee, in its stock exchange filing reported, under the Merger Cooperation Agreement dated 22 December 2021, entered into amongst the Company, Bangla Entertainment Private Ltd (‘BEPL’), and Culver Max Entertainment Private Ltd (formerly known as Sony Pictures Networks India Private Ltd), 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.
The request by Zee to extend the deadline comes just a day after two independent directors were unable to secure the re-appointment of the company’s board.
Directors Sasha Mirchandani and Vivek Mehra “failed to get the requisite majority of votes,” the company said in an exchange filing.
Sony Pictures Networks India (SPNI) commented, “ZEE’s notice to the Bombay Stock Exchange and the National Stock Exchange of India dated 17 December is an acknowledgement that they will not be able to meet the 21 December 2023 deadline to close the SPNI/ZEE merger. The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline. 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.”