Zee-Sony Merger: NCLT approves the merger, dismisses all objections

The National Company Law Tribunal (NCLT) on Thursday approved the Zee-Sony merger, according to the news agency Reuters. The NCLT had initially reserved its verdict on the merger between Zee-Sony on July 10.

The Mumbai bench of the NCLT, which comprised of H V Subba Rao and Madhu Sinha, had reserved the judgment after listening to objections from creditors such as Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship who raised concerns about the scheme.

In December 2021, Zee Entertainment and Sony Pictures reached an agreement to combine their businesses, and both companies approached the tribunal to seek approval for the merger.

Before approaching the tribunal, both companies had already obtained permissions from the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), the Competition Commission of India (CCI), and the Securities and Exchange Board of India (Sebi).

During Zee’s Q1FY24 earnings call, Punit Goenka, chief executive officer of Zee Entertainment, said that his legal situation and the merger were distinct matters.

The company further added that besides the provision affirming his role as an essential part of the merged entity, there were no other changes to the agreement’s clauses.