The NCLT (National Company Law Tribunal) hearing on the Zee-Sony merger has been moved to April 24, 2023. The fifth hearing happened on April 13, 2023.
The Thursday hearing is believed to be much more prolonged and constructive as compared to earlier hearings (short-lived in time).
“This indicates that things may be moving in the right direction for the merger,” said Karan Taurani, SVP, Research Analyst, Elara Capital.
IDBI Bank has demanded payment of Rs 1.5 billion from Zee as dues from its related parties, which may still be a roadblock for the final merger approval.
While the management believes that NCLT approval for the merger can come without a resolution with IDBI Bank, Taurani said that as per Elara’s channel checks with legal experts, the merger approval will only come after a legal outcome or settlement with IDBI Bank.
“The merger approval may only come in after the settlement of dues with IDBI Bank, which also is being contested in the NCLT,” said Tuarani.
Taurani believes that at least 3-4 more hearings will take place before the merger approval is given.
He said, “In case of any settlement or outcome reached with IDBI Bank, we expect the merger approval process to complete in 3-4 weeks post the same. We believe there is some likelihood of the merger approval coming in over the next 4-6 weeks.”