In a recent turn of events following the merger between Zee Entertainment Enterprises Ltd. (ZEEL) and Sony Entertainment India, the former is set to lose its spot on the FTSE Global Equity indices. The replacement? Expect to see ‘Culver Max Entertainment’ take ZEEL’s vacant spot.

What Happened: According to a report by Mint, the merger has led to the decision to delist ZEEL from the FTSE indices. ‘Culver Max Entertainment’, essentially Sony Pictures Networks India, will take its place.

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Details regarding ZEEL’s final trading day, the merger’s effective date, and Culver Max’s listing date remain undisclosed by FTSE Russell. Once the merger is through, Culver Max Entertainment will give eligible ZEEL shareholders 85 new shares for every 100 shares they hold.

The National Company Law Tribunal (NCLT) approved the merger between Zee and Sony on August 10 this year. However, the decision faced a hurdle when Axis Finance Ltd moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT's order on September 14. The finance company cited contravention of a regulatory order against Punit Goenka, the erstwhile CEO and MD of ZEEL.

Why It Matters: The shift from ZEEL to Culver Max Entertainment in the FTSE indices signifies the changing landscape of the Indian entertainment industry. The merger between Zee and Sony is a major event that has significant implications for shareholders and the market as a whole. It also highlights the increasing consolidation in the industry, with bigger entities emerging through mergers and acquisitions. Axis Finance’s legal challenge will draw close attention because it could potentially affect the merger and the subsequent changes in the indices.

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