Was Sony's strategy all along to engage with Zee and then withdraw: Subhash Chandra
In an interview with The Economic Times, Subhash Chandra, chairman emeritus of Zee, assuaged shareholders and also shared his thoughts about the possibility of future deals
"I can prove it was Sony's criminal design to start the merger process and then withdraw," averred Subhash Chandra, chairman emeritus of Zee Entertainment Enterprises, in his interview with The Economic Times.
While censuring Sony, Chandra said that Zee had little choice but to take legal recourse. He also clarified that while Punit Goenka's candidature as MD and CEO of the merged entity was the thorn in Sony's side, the Zee family had collectively decided that Goenka would step aside for the greater good of Zee.
He said that it wasn't acceptable to Sony when the decision was communicated to them. "I believe this was Sony's strategy all along: To engage with Zee and eventually withdraw, portraying Zee as vulnerable. I intend to convey this perspective to the Zee board as well," he told the news outlet.
In the interview, the Chairman Emeritus also assuaged shareholder concerns in light of the share prices of Zee crashing on January 23. "Have patience for three to four quarters with Punit and the board, and you will see the results. The company will rebound to the levels it once achieved," he said addressing minority stakeholders.
The Zee founder also stated that the promoter family would be raising its stake in the company by 5% soon and eventually to 26%.
When asked about reaching out to Ambani and Adani groups for a possible deal, Chandra categorically said that he doesn't have "any appetite for additional debt" despite being approached by several large private equity firms with offers to provide loans and increase promoter shareholding.
