Sony Merger Inch A Step Closer As Zee Settles With IndusInd Bank

Zee Entertainment Enterprises and IndusInd Bank have announced a settlement of all dues, leading to a 2% jump in Zee shares, CNBC TV18 reports. This development comes amidst the ongoing legal challenges faced by Zee’s promoters, as reported by Benzinga here and here.

Settlement Details

The National Company Law Appellate Tribunal (NCLAT) confirmed that all payments were made to IndusInd Bank by June 30. IndusInd Bank also confirmed that all payments had been made as per the agreed terms. This announcement brought relief to Zee Entertainment shareholders and led to a 2% increase in the company’s share price on the morning of July 3.

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Legal Challenges

Zee’s promoters, Subhash Chandra and Punit Goenka, are currently challenging a year-long ban imposed by the Securities and Exchange Board of India (SEBI) that prohibits them from holding board positions in listed companies. The ban, due to their alleged roles in misusing company funds for related group entities, has cast a shadow over the planned Zee-Sony merger.

Impact on Sony-Zee Merger

Despite the legal challenges, Goenka has insisted that the planned merger between Zee Entertainment and the Indian unit of Sony Pictures will proceed, regardless of his own role as CEO of the combined company. The merger is of immense importance, irrespective of his position, Goenka said.

Future Directions

The settlement with IndusInd Bank is a significant step towards resolving the financial issues faced by the company. However, the ongoing legal challenges and their potential impact on the Zee-Sony merger will be closely watched by stakeholders.

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Posted In: SonyZee Entertainment Enterprises