Amid speculations over merger, Sony says ‘We take SEBI’s interim order very seriously'

Speculations have been rife over the fate of the ZEE-Sony merger deal ever since the Securities and Exchange Board of India (SEBI) issued an interim order barring ZEE promoters Subhash Chandra and his son Punit Goenka from holding any directorial position in any listed companies.

Taking cognizance of the various reports floating around, in a statement issued from its headquarters in Culver City, Sony Pictures Entertainment (SPE), said, “There have been several erroneous press reports recently speculating about the future of ZEE’s planned merger with SPNI following SEBI’s interim order against Subhash Chandra and Punit Goenka. We take very seriously the SEBI interim order and will continue to monitor developments that may affect the deal.”

As reported earlier, SEBI passed the interim order after investigations were carried out by the regulator, which revealed that both Subhash Chandra and Punit Goenka had abused their position as Directors and had siphoned off funds in 2019 for their own benefit. SEBI stated that this was done in a planned manner.

Also read:

SEBI bars Subhash Chandra, Punit Goenka from holding director’s position in listed Cos

Order against ZEE promoters: SAT directs SEBI to respond to ZEE’s plea

Following SEBI’s order, ZEE-Sony merger deal under the scanner

In an official statement issued, R Gopalan, Chairman, Zee Entertainment Enterprises, had said, “The Board is currently in the process of reviewing the detailed order, and appropriate legal advice is being sought in order to take the next steps as required.”

Following SEBI’s interim order, ZEE filed a petition challenging the order before the Securities Appellate Tribunal (SAT), where it contended that SEBI’s order would impact the hearing on its merger deal with Sony before the National Company Law Tribunal (NCLT). Following ZEE’s petition, SAT asked SEBI to file its response within 48 hours.

The hearing on the ZEE-Sony merger deal before National Company Law Tribunal (NCLT) is scheduled for June 25, 2023.