The National Company Law Tribunal has granted approval for the merger between Zee Entertainment Enterprises and Culver Max Entertainment (formerly known as Sony Pictures Networks India).
The Mumbai bench, led by H V Subba Rao and Madhu Sinha, issued the order, clearing the way for the formation of a media giant valued at $10 billion, the largest in India.
Objections raised against the merger were also dismissed by the tribunal, marking a significant milestone for the media industry.
After listening to objections from various creditors, including Axis Finance, JC Flower Asset Reconstruction, IDBI Bank, Imax, and IDBI Trusteeship, the NCLT reserved its decision on the merger.
In December 2021, Zee Entertainment and Sony Pictures announced their intention to merge their operations.
Following approvals from regulatory bodies such as the Competition Commission of India, the Securities and Exchange Board of India, and stock exchanges like NSE and BSE, both companies sought NCLT’s sanction for the merger.
The merger process faced setbacks when creditors raised concerns, particularly related to a non-compete clause in the scheme.
The objections were closely linked to regulatory actions against Zee Entertainment’s promoters, Subhash Chandra and Punit Goenka, including the Securities Appellate Tribunal’s order barring Punit Goenka from holding directorial positions in listed companies.
Despite the obstacles, the NCLT’s approval sets the stage for the emergence of a formidable media entity poised to make a substantial impact on India’s media landscape.
