Post merger, ZEEL to be replaced by Culver Max Entertainment on FTSE Global Equity indices
As per FTSE Russel, the merger’s date is not known yet
Zee Entertainment Enterprises Ltd (ZEEL) will be de-listed from FTSE Global Equity indices following its merger with Culver Max Entertainment (Sony Entertainment India), media networks have reported.
FTSE Russel has said the date of the merger is not known yet, media reports say.
Under the merger terms, Zee Entertainment Enterprises shareholders will receive 85 new Culver Max Entertainment shares for every 100 shares held.
“...subject to the completion of the merger, FTSE Russell anticipates Culver Max Entertainment will replace Zee Entertainment Enterprises in the FTSE Global Equity indices based on the merger terms on the effective date of the merger," it said.
According to Karan Taurani, senior vice president of research at brokerage Elara Capital, the delay is marginal. He added that there could be a marginal delay in filing the merged entity's closing precedents (CPs). The record date for a merger is usually given one week before delisting. As a result, relisting could take place in the second week of December 2023, he said.
On August 10, the Mumbai Bench of NCLT had given its nod to Zee's $10 billion merger with Culver Max. It had dismissed the objections raised by lenders including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co and Imax Corp.
Recently, IDBI Bank and Axis Bank have moved the NCLAT challenging the NCLT order that had cleared the decks for the merger of ZEE and Sony after a roller-coaster ride of two years.
The journey of the merger began in December 2021 with ZEEL’s Board of Directors considering and approving the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013 (Scheme), whereby the Company and Bangla Entertainment Private Limited, an affiliate of Culver Max Entertainment Pvt Ltd (formerly known as Sony Pictures Networks India Private Limited), shall merge in Culver Max Entertainment Pvt Ltd.
After getting the requisite approvals and NOCs from shareholders and certain regulators, including SEBI and the Competition Commission of India (CCI), the company filed a petition with NCLT for approval of the scheme.
On July 11, the tribunal reserved its order on the merger following hearing objections from several creditors, including Axis Finance, JC Flower Asset Reconstruction Co., IDBI Bank, IDBI Trusteeship and Imax Corp.
