ZEE-Sony merger: Have not yet agreed to a deadline extension, says SPNI

A day after Zee Entertainment Enterprises Ltd (ZEEL), in a filing with the BSE and NSE, sought extension of the deadline of its proposed merger with Culver Max Entertainment (CMEPL), formerly Sony Pictures Networks India (SPNI), SPNI stated that the notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline.

In an official statement issued, SPNI said, “ZEE’s notice to the Bombay Stock Exchange and the National Stock Exchange of India, dated December 17, is an acknowledgement that they will not be able to meet the December 21, 2023 deadline to close the SPNI/ZEE merger. The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline.”

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SPNI further stated that it is required to start those conversations, but has not yet agreed to a deadline extension. “We look forward to hearing ZEE’s proposals and how they plan to complete the remaining critical closing conditions,” the statement added.

As reported earlier, as per a filing with the BSE and NSE, ZEEL had stated that it “has requested CMEPL and Bangla Entertainment Pvt Ltd (BEPL) to extend the date required to make the scheme effective, as per the terms of the Merger Cooperation Agreement”.

December 21, 2023 had been set as deadline for the proposed merger.

ZEEL had entered into the Merger Cooperation Agreement with BEPL and CMEPL on December 22, 2021. The proposed merger is slated to create India’s biggest media conglomerate. As per industry reports, the merger is valued at $10 billion. The proposed merger has received the necessary regulatory approvals from the Competition Commission of India, Bombay Stock Exchange, National Stock Exchange, as well as the shareholders and creditors of ZEEL.