Zee Entertainment Scraps Merger Plan with Sony (Image Source: IANS)
On Tuesday, Zee Entertainment Limited pulled back merger application against Culver Max Entertainment (Sony) from NCLT Mumbai Bench.
As per the company’s filing on the BSE, “The implementation application was filed by ZEE on 24th January 2024, seeking directions on the implementation of the Composite Scheme of Arrangement between ZEE, Culver Max Entertainment Pvt. Ltd. and Bangla Entertainment Pvt. Ltd.,”
The application, lodged on January 24, 2024, sought directives for the implementation of the Composite Scheme of Arrangement involving ZEE, Culver Max Entertainment Pvt. Ltd., and Bangla Entertainment Pvt. Ltd.
This strategic decision is backed by counsel from legal experts and thorough board deliberations, aims to refocus the company’s efforts towards growth and exploring strategic opportunities for enhanced shareholder value. The move underscores ZEE’s commitment to reviewing and guiding management’s action-oriented steps while fostering a performance-centric approach.
Commenting on the strategic decision, Mr. 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 Hon’ble NCLT.”
Chairman Mr. R. Gopalan emphasised that following independent legal advice, the board recommended the withdrawal of the implementation application, aligning with the overarching goal of maximising shareholder value and reinforcing the company’s position in ongoing arbitration proceedings, including those at the Singapore International Arbitration Centre (SIAC).
Under the board’s guidance, ZEE’s management has embarked on a comprehensive approach focusing on frugality, optimization, and quality content. This approach includes structural streamlining to enhance content creation, distribution, and monetization processes.
