ZEE-Sony receives merger approval from BSE, NSE

The approval from both the bourses marks a firm and positive step in the overall merger approval process, a company statement said.

The approvals permit the company to proceed with the following steps in the overall merger process.

The composite scheme of arrangement remains subject to applicable regulatory and other approvals.

Zee and Sony had signed definitive agreements for merger of ZEEL into Sony Pictures Networks India Limited but Invesco and OFI Global China Fund LLC, which together hold about 17.9 per cent stake in ZEE, had opposed the deal.

Last year, Invesco had sought an EGM for the removal of ZEEL MD &CEO Punit Goenka and appointment of six directors.

However, the ZEE Board had then proposed a merger deal with Sony to counter the move.

The matter went to National Company Law Tribunal (NCLT), National Company Law Appellate Tribunal (NCLAT) and Bombay High Court.

Later, Invesco Developing Markets Fund backed the merger and decided not to pursue its requisition for an extraordinary general meeting for the removal of Goenka.

When the deal went public in Sept. last year, it was disclosed that Sony would invest USD 1,575 billion and control 52.93 percent stake in the partnership. Zee will hold the remaining 47.07 percent stake.

The merger of Sony and ZEE would make it the second largest entertainment network. It will include 75 channels, two streaming platforms and boast of 28 percent Indian TV viewership.

(With UNI Inputs)