Zee Entertainment Enterprises Ltd on Sunday said it has requested Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited) for extension of timeline to complete the mega media merger.
“Pursuant to the Merger Cooperation Agreement dated December 22, 2021 entered into amongst the Company, Bangla Entertainment Private Limited (‘BEPL’), and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited), 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,” said Zee in a stock exchange filing.
Zee, in September 2021, said it has entered into a non-binding term sheet with SPNI to bring together their linear networks, digital assets, production operations and programme libraries.
The combined entity will own over 70 TV channels, 2 video streaming services (ZEE5 and Sony LIV) and two film studios (Zee Studios and Sony Pictures Films India), making it the largest entertainment network in India, Zee said in September 2021.
Meanwhile, two independent directors were unable to secure re-appointment to the board of Zee, the media firm said on Saturday.
Independent directors Sasha Mirchandani and Vivek Mehra “failed to get the requisite majority of votes”, the company said in an exchange filing.
The reappointment of the two Zee Entertainment independent directors was being closely watched as they could have influenced the selection of the head of the new merged entity, reported Reuters.
Zee said it had appointed three new independent directors, Venkata Ramana Murthy Pinisetti, Shishir Babubhai Desai and Uttam Prakash Agarwal with effect from December 17, 2023.
These three will take charge as additional directors in the category of independent directors of the company, the media firm said in a stock exchange filing after its Annual General Meeting (AGM).
Reports said Zee Entertainment has been locked in a showdown with Sony over whether Chief Executive Officer Punit Goenka will lead the firm after the completion of any potential deal to create a $10-billion media giant.
Last month, Mint reported, citing people aware of the matter, that Sony is pushing for its Indian operations managing director NP Singh to head the merged company, as Zee’s candidate, managing director Punit Goenka, faces an on-going investigation, the report said.
Zee is insisting that Goenka — also its founder Subhash Chandra’s son — will helm the new entity, as agreed in a pact signed in 2021, while Sony is wary of appointing him given a regulatory probe against him, the report said.
The Securities and Exchange Board of India (SEBI) had in June alleged that Goenka and Zee Group Chairman Subhash Chandra were actively involved in diverting company funds.
Both Goenka and Chandra have denied any wrongdoing. A failure to reach an agreement on leadership by December 21 may derail the merger, the Mint report said.
In September, Sony had announced a delay in the merger, saying it expected completion “within the next few months”.
Shares of Zee Entertainment slid as much as 8.9% on Friday before paring losses on speculation around the fate of the deal ahead of the December 21 deadline. Non-executive director Adesh Gupta is stepping down for personal reasons, the company said on Thursday.
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