The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the order on the merger scheme between Zee Entertainment Enterprises (ZEE) and Culver Max Entertainment (Sony).
BSE, NSE, and other regulators like the Competition Commission of India and SEBI approved the merger application. NCLT didn’t approve the application earlier due to the objections of some creditors. The creditors of Essel Group were not ready to accept the merger, but when BSE and NSE gave their reports about Essel Group, NCLT started thinking in a different direction. It took nearly two years for the proposed merger to become a regulatory hurdle.
The combined entity of Zee and Sony will have 75 channels, two OTT platforms, and two studios which will frame a strong presence. It has the potential to become the second-largest media platform after Disney Hotstar.
The post-merger entity will have contributors such as Sony’s shareholders who will hold 50.86% of the whole entity, Zee’s promoters will hold 3.99%, and the remaining 45.15% will be held by Zee’s shareholders.
The Zee-Sony merger is not final yet. India’s National Company Law Tribunal (NCLT) approved the merger last week, but the joint enterprise has to file with the Registrar of Companies within 30 days of the NCLT approval. It then has to be vetted by the country’s Ministry of Information and Broadcasting.
Know more about the merger at variety.com
