IDBI Trusteeship Challenges Zee Entertainment-Sony Unit Merger

IDBI Trusteeship Services Ltd. filed an appeal against the National Company Law Tribunal’s (NCLT) order clearing the merger of Zee Entertainment Enterprises Ltd. with Sony Group’s Indian subsidiary Culver Max Entertainment Private Ltd.

Zee has been served with an appeal on behalf of IDBI Trusteeship against the company before the National Company Law Appellate Tribunal (NCLAT), challenging the NCLT’s order passed on 10 August, the Indian media company said in a stock exchange announcement.

On 10 August, the Mumbai bench of the NCLT approved the composite scheme of arrangement amongst Zee, Bangla Entertainment Private Ltd. and Culver Max Entertainment, formerly known as Sony Pictures Networks India Private Ltd. The NCLT had also dismissed the intervention petition.

Last month, Axis Finance also challenged the order passed by the NCLT.

Zee and Sony Pictures in December 2021 signed definitive agreements to merge their businesses, but the merger has been delayed amid legal challenges.

Sony Group recently said both companies continue to proceed with the necessary procedures to complete the transaction, which was previously expected to close by the end of the first half of the fiscal year ending on 31 March 2024.

Based on the latest progress, the merger is currently expected to close in the months ahead, it noted.

The merger proposal earlier received approvals from the NSE, BSE and Zee shareholders. The Competition Commission of India also approved the merger with modifications.

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