Working towards completing merger deal with Sony: ZEEL

Mumbai: Zee Entertainment Enterprises has said it is working towards completing its planned merger deal with Culver Max Entertainment, the India media unit of Sony Group Corporation.

“We wish to reiterate that the company is continuing to work towards a successful closure of the proposed merger as per the Composite Scheme of Arrangement approved by the Hon’ble NCLT, Mumbai Bench,” the company said in a response to stock exchanges.

ZEEL has also termed as factually inaccurate a Bloomberg news article that suggested the company’s planned merger with the India media division of Sony Group Corporation might not proceed. Bloomberg had reported that Sony is likely to send a letter next week to Zee saying the stipulated demands for the merger couldn’t be met due to the dispute between the two companies over who would get the CEO position.

As reported first by ET, Sony wants Punit Goenka, who was to serve as the MD and CEO of the merged entity, to step aside till he gets cleared by the Securities Exchange Board of India, which is probing allegations of fund diversion against him and his father, Subhash Chandra.

Sony wants the MD & CEO of its India unit, NP Singh, to take over as the CEO of the merged entity.

The merger deal, which was signed two years ago, is yet to be concluded despite having all the regulatory clearances.

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