“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.,” it said in an exchange filing.
According to the company, the decision, which is based on legal advice, will allow it “to continue to aggressively pursue” all of its claims against Sony in the course of the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums.
Moreover, with the withdrawal, it aims to evaluate strategic opportunities in order to generate higher value for all shareholders.
“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,” said R. Gopalan, Chairman, ZEE.
On August 10, 2023, the Mumbai bench of the NCLT approved ZEEL’s plan to merge with BEPL and Culver Max Entertainment, two Sony group companies. This merger could have resulted in the creation of a media company valued at USD 10 billion.The merger was called off by Sony on January 22. Zee’s inability to meet certain financial terms of the agreement and devise a strategy to rectify them contributed to the decision to make the change. In response to the accusations, Zed said that the Japanese company had acted in “bad faith” when it called off the merger.The largest entertainment network in the nation would have been created if the Sony-Zee merger had gone through, owning over 70 TV channels, two video streaming services (ZEE5 and Sony LIV), and two movie studios (Zed Studios and Sony Pictures Films India).
