Zee Entertainment shares slump as Sony has not yet agreed to extension for merger deadline
Sony Pictures Networks India (SPNI) said on Tuesday that it looks forward to hearing Zee Entertainment’s proposals and how they plan to complete the remaining critical closing conditions.
Sony Pictures Networks India (SPNI) said in a statement: “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. SPNI 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.”
Zee shares fell more than 4 per cent on Tuesday after Sony statement on the merger.
Zee shares were trading at Rs 268.20 on BSE.
Zee Entertainment had asked Culver Max Entertainment, formerly known as Sony Pictures Network India, to extend the date required to make the merger scheme effective.
The deadline for the merger is December 21.
“Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), we hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021 entered into among the company, BEPL and CMEPL, the company has requested CMEPL and BEPL to extend the date required to make the scheme effective, as per the terms of the Merger Cooperation Agreement,” Zee Entertainment said in a filing.
Zee said this is an update on composite Scheme of Arrangement among the company, Bangla Entertainment Private Limited (BEPL), and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited) (CMEPL) and their respective shareholders and creditors.