Sony Group Corp. has officially notified Zee Entertainment Enterprises Ltd. it plans to call off the merger between its India unit and the media network, ending a two-year acquisition saga and leaving Zee vulnerable to competition as rivals bulk up, as per Bloomberg.
The report stated, “The Japanese entertainment giant sent a termination letter to Zee early on Monday and is expected to disclose it to the exchange later, said people familiar with the plan, who asked not to be identified as the announcement is not yet public.”
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As per the initial merger agreement, Zee Entertainment Enterprises MD and CEO, Punit Goenka was slated to assume the role of MD and CEO in the merged venture. SPNI (Sony Pictures Networks India) was intended to hold 50.86 percent of the company, Zee’s promoters would have 3.99 percent, and the remaining 45.15 percent was to be allocated to public shareholders.
In August 2023, days after the NCLT (National Company Law Tribunal) approved the Zee-Sony merger, SEBI (Securities and Exchange Board of India) issued an order that prevented Goenka and his father Subhash Chandra from assuming any significant management roles in Zee companies or the newly-merged entity.
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