Zee withdraws merger implementation application filed before NCLT

Zee announced its decision to withdraw the merger implementation application filed before the National Company Law Tribunal (NCLT), Mumbai bench.

The implementation application was filed by Zee on  January 24, 2024, seeking directions on the implementation of the Composite Scheme of Arrangement between ZEE, Culver Max Entertainment and Bangla Entertainment.

Zee said in a statement that the step taken by the company to withdraw the implementation application is based on the advice received by the Board after a detailed consultation with legal experts.

It added, “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 to reviewing the strategic action-oriented steps taken by the management and providing timely guidance.”

It also said that this decision to withdraw the implementation application will enable it to continue to pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums.

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 NCLT. The Board remains focused towards maximising shareholder value, strengthening the Company’s claims in arbitration and enabling the Company to explore strategic opportunities.”

Sony terminated its two-year-long merger discussions with Zee on January 22, marking the conclusion of a process that aimed to establish a $10 billion media giant.