The board of ZEE Entertainment Enterprises today decided to withdraw the merger implementation application filed before the National Company Law Tribunal (NCLT), Mumbai bench. On 24 January this year, Zee had filed the merger agreement seeking directions on the implementation of the merger between Zee and Sony India units – Culver Max Entertainment Pvt., and Bangla Entertainment Pvt.

In a statement, Zee said the decision to withdraw the implementation application will enable it to aggressively pursue all its claims against Sony in the ongoing arbitration in Singapore.

On 22 January this year, Sony Corporation of Japan had decided to scrap a planned merger with Zee Entertainment, which would have formed one of India’s largest entertainment groups with a quarter of the market share among the general entertainment channels.

The Zee statement said the board took the step today based on the legal advice received by the board after a detailed consultation with legal experts. “This decision will also enable the company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders. The board remains committed towards reviewing the strategic action-oriented steps taken by the management and providing timely guidance,” the statement said.

“The immediate priority for the company is to focus on performance and achieve its targeted goals for the future. We have reviewed the key steps taken by the management over the last few months that are result-oriented, and we believe that the company is well poised to chart a stronger growth trajectory. Hence, after seeking an independent legal opinion, the board has advised the management of the company to withdraw the implementation application filed before the NCLT,” R Gopalan, chairman of ZEE said.

“The board remains focused towards maximising shareholder value, strengthening the company’s claims in arbitration, and enabling the company to explore strategic opportunities.”

First Published: Apr 16 2024 | 8:15 PM IST