Zee Entertainment Enterprises Ltd. has withdrawn the Zee-Sony merger implementation application filed before the National Company Law Tribunal, months after the Japanese media giant terminated the $10-billion merger. Zee had approached the NCLT on Jan. 24 to get the deal implemented, after Sony called off the merger.
The decision to withdraw the plea is based on advice received by the board after a detailed consultation with legal experts. This decision will also enable the company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders, Zee said in an exchange filing on Tuesday.
As per Zee's Chairman R Gopalan, after reviewing recent management steps and seeking legal advice, the board advised withdrawing the application filed before the NCLT. Their priority remains to maximise shareholder value and explore strategic opportunities.
In January, Sony decided to cancel the proposed $10-billion merger between its Indian arm and Zee Enterprises. Sony cited Zee's failure to fulfill certain conditions set as prerequisites for the merger, including requirements related to financial management and the recovery of dues from associated parties.
Following this, Zee Entertainment took action by filing a petition with the NCLT on Jan 24. They sought directions from the tribunal to enforce the merger. On Jan. 30, the tribunal agreed to hear the plea.
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