Sony-Zee merger: NCLT asks Sony to respond in 3 weeks
What's the story
Mad Man Film Ventures, a Zee shareholder, has filed a plea with the National Company Law Tribunal (NCLT) to intervene and rescue the failed deal between Sony and Zee. The NCLT has given Sony Group companies Culver Max Entertainment and Bangla Entertainment three weeks to respond to the plea with the matter adjourned until March 12. Sony terminated the merger on January 22, citing unmet closing conditions and demanded $90 million termination fee from Zee.
Sony's reaction to plea
Sony's lawyer terms shareholder's plea as Zee's proxy
Lawyer Darius Khambata while representing Sony Group companies, argued that the application is a 'proxy of Zee.' He added that the merger was conditional to various regulatory approvals and other pre-conditions between parties. He held that the scheme explicitly mentoned that it would become effective on the date of the last date of fulfilling all the conditionalities. Khambata added that some of the conditionalities remain to be fulfilled by Zee.
Zee contests Sony's claim
Zee contests charges, seeks direction for merger implementation
Janak Dwarkadas, Zee's counsel said they would decide later whether to file their response in this application. Zee has already filed an application with the NCLT for direction to implement the merger scheme. A major bone of contention for the merger falling apart was a disagreement over the leadership of the combined entity involving Zee's MD & CEO, Punit Goenka. Sony was uncomfortable with an ongoing probe into allegations of fund diversion by Goenka.