ZEE-Sony Merger Case: ZEE withdraws merger implementation application from NCLT
"This decision to withdraw the implementation application will enable the Company to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums," ZEE shared in a statement.
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ZEE Entertainment Enterprises Ltd. (ZEE) said on April 16 that it has decided to withdraw the merger implementation application filed before the National Company Law Tribunal (NCLT), Mumbai bench, against Sony. The implementation application was filed by ZEE on 24th January 2024, seeking directions on the implementation of the Composite Scheme of Arrangement between ZEE, Culver Max Entertainment Pvt. Ltd. and Bangla Entertainment Pvt. Ltd.
The step taken by ZEE to withdraw the implementation application is based on the advice received by the Board after a detailed consultation with legal experts. ZEE said in a statement that this decision will also enable the Company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders. "The Board remains committed towards reviewing the strategic action-oriented steps taken by the management and providing timely guidance. This decision to withdraw the implementation application will enable the Company to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums," the statement read.
Commenting on the decision, R. Gopalan, Chairman, ZEE said, “The immediate priority for the Company is to focus on performance and achieve its targeted goals for the future. We have reviewed the key steps taken by the management over the last few months that are result-oriented, and we believe that the Company is well poised to chart a stronger growth trajectory. Hence, after seeking an independent legal opinion, the Board has advised the management of the Company to withdraw the implementation application filed before the Hon’ble NCLT."
Gopalan added, "The Board remains focused towards maximizing shareholder value, strengthening the Company’s claims in arbitration and enabling the Company to explore strategic opportunities.”
To enhance the productivity levels, ZEE's MD and CEO Punit Goenka had announced a three-pronged approach centred around Frugality, Optimization and a sharp focus on Quality Content. In line with this approach, ZEE has streamlined its structure, to enhance the content creation, distribution and monetization process. The Board has also instituted a Monthly Management Mentorship (3M) Program to regularly review and advise the management on critical business aspects. ZEE said, the concerted efforts being taken by the Board and the management are aimed towards achieving robust growth to consistently generate higher value for shareholders.
