Sony has agreed for discussion on merger deadline extension: ZEEL
ZEEL said this in a filing submitted with BSE
Two days after requesting Sony to push the deadline for their merger, ZEEL has informed the BSE that Sony Pictures Network India (now Culver Max Entertainment Pvt Ltd) has agreed for a discussion on the matter.
“The Company is now in receipt of a communication from CMEPL and BEPL that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered amongst the Parties, the Company, CMEPL and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time,” ZEEL said in a filing.
“Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby provide you with an update on our communication dated December 17, 2023,” the filing read.
On December 17, Zee Entertainment Enterprises Ltd (ZEEL) has asked Culver Max Entertainment Private Limited (CMEPL) to extend the timeline to complete the much-awaited merger .
In a disclosure to the Bombay Stock Exchange, ZEEL had then said, “Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR Regulations’), we hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021 entered into amongst the Company, BEPL (Bangla Entertainment Private Limited) and CMEPL, 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.”
However, a day after this, Sony said that it has not yet agreed to a deadline extension.
“ZEE’s notice to the Bombay Stock Exchange and the National Stock Exchange of India dated December 17 is an acknowledgement that they will not be able to meet the December 21, 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,” the statement read.
Earlier, industry insiders had said that the listing of the Zee-Sony merged entity, which will create a $10 billion media and entertainment powerhouse, could happen anytime in January next year and the record date could be set by November-end.
