The Zee Entertainment on Thursday said that the Axis Finance has approached the National Company Law Appellate Tribunal (NCLAT) against the order approving the merger of the company and sony.
The Company has been served with an appeal on behalf of Axis Finance Limited against the Company before the NCLAT, Delhi, challenging the order dated August 10, 2023 passed by NCLT, Mumbai Bench, dismissing the Interlocutory Application No. 124 of 2022 in CP (CAA) No. 209 of 2022 in CA (CAA) No. 204 of 2022 and approving the composite scheme of arrangement amongst Zee Entertainment Enterprises Limited, Bangla Entertainment Private Limited and Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited), the company said in the filing.
Background of the order passed by NCLT earlier
NCLT on August 10 approved the merger of Media major Zee Entertainment Enterprise with Sony India and dismissed all objections in the merger case.
According to the scheme arrangement, Sony will hold 50.86 per cent shares indirectly. The founder of Zee will own close to four per cent and the rest will be with the other shares holders of Zee Entertainment. Additionally, Sony Group is also going to pay a non-compete fee of Rs 1,100 crore to Zee Entertainment.
The court also said the merger should not be held ransom due to a pending case in the Securities and Exchange Board of India (SEBI). The case is related to Sebi's ban on Subhash Chandra and Punit Goenka from holding board positions in publicly listed companies for the involvement in diverting funds to other listed entities and firms of the group.
Zee Entertainment Enterprise shares
The shares of Zee Entertainment Enterprise on Thursday at 1:42 pm IST were at Rs 272.90, down by 1.09 percent.
