The Sony-Zee merger is likely to be delayed by a few months, according to a report.
The merger between Zed and Sony Group's India subsidiary, which was supposed to be completed by the end of September 2023, may take a few more months.
Ankush Pandey
The merger of Culver Max Entertainment (Sony Pictures Networks India) and Zed Entertainment Enterprises (Zed) is going to be postponed, according to a statement issued by Japan's Sony Group on Friday.
"This transaction was expected to be completed by the end of the first half of fiscal year 2023, but based on the current state of preparation, we expect completion within the next few months," Sony stated in a press release.
The merger's completion date has been pushed out to the end of September 2023 owing to legal complications regarding Zed.
The National Company Law Tribunal (NCLT) approved the merger in August, dismissing several creditors' arguments against Zed.
Recent events, however, have thrown the merger into chaos.
Punit Goenka was barred from serving on the boards of four Zed Group firms, including Zed Entertainment, by the Securities and Exchange Board of India (Sebi). Furthermore, Goenka has been forbidden from serving as a director in any organizations established as a result of the merger.
Zed Group initially announced a 2021 merger with Sony's India subsidiary. Nonetheless, it faced severe delays as a result of Sebi's interim ruling barring Punit Goenka from holding directorships in any listed firm.
While Sebi accepted Goenka's future role as managing director following the merger, questions concerning his participation with ZEEL remain unanswered, awaiting the outcome of an inquiry into suspected financial theft.
The continuing Sebi investigation is likely to postpone the merger process even further, with a final decision expected only after Sebi completes its probe.
