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The Board of Zee Entertainment Enterprises on Tuesday decided to withdraw the merger implementation application filed before the National Company Law Tribunal (NCLT), Mumbai Bench.
On January 24, Zee had filed the merger agreement seeking directions on implementation of the merger between Zee and Sony India units — Culver Max Entertainment Pvt Ltd, and Bangla Entertainment Pvt Ltd.
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 January 22 this year, Sony Corporation of Japan had decided to scrap a planned merger with Zee Entertainment. The merger would have formed one of India’s largest entertainment groups with a quarter of market share among the general entertainment channels.
The Zee statement said the Board took the step based on legal advice after a detailed consultation with legal experts.
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“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. 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 to withdraw the implementation application filed before the NCLT,” R Gopalan, chairman of Zee, said.
He added, “The Board remains focused towards maximising shareholder value, strengthening the company’s claims in arbitration and enabling the company to explore strategic opportunities.”
