“Sign From The Lord”: Zee CEO Posts On Sony Merger Analysis From Ayodhya
New Delhi: While attending the dedication ceremony of the Ram temple in Ayodhya, Uttar Pradesh, today’s CEO of Zee Entertainment Enterprises Ltd. (ZEEL), Punit Goenka, issued an update about a catastrophic development in his organization.
A merger termination notice and a $90 million claim for purported violations of the merger cooperation agreement by Mr. Goenka’s business have been submitted to ZEEL by Japan’s Sony Group Corp.
As one of the well-known guests invited to the pran prathistha event, the managing director and CEO of ZEEL made reference to the company’s advancements as “a sign from the Lord” in a post on X.
“As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent two years envisioning and working towards had fallen through, despite my best and most honest efforts,” stated Mr. Goenka.
This, in my opinion, is a sign from the Lord. I make the decision to go on constructively and endeavor to support all stakeholders in Bharat’s innovative M&E Company. “Jai Shri Ram, he exclaimed.
Today, ZEEL’s board met to discuss the merger termination notice that Sony Group Corp. of Japan submitted.
In a letter addressed to ZEEL today, the Japanese company said that the termination was due to unfulfilled terms in the merger agreement. The more than two-year-old merger came to a standstill over the combined company’s leadership while Mr. Goenka was being investigated by the market regulator.
“ZEEL categorically denies all the assertions raised by Culver Max and BEPL on the alleged breaches under the terms of the MCA, including their claims for the termination fee,” ZEEL said in a filing with the exchange.
BEPL stands for Bangla Entertainment Pvt Ltd, and Culver Max Entertainment Pvt Ltd was formerly known as Sony Pictures Networks India.
“… ZEEL also held several deliberations and good faith negotiations with Culver Max and BEPL, with a view to consider an extension of the merger completion timeline, that did not materialise,” said ZEEL.
According to ZEEL, Mr. Goenka was willing to step down in favor of the merger. Proposals were discussed in this regard, including the appointment of a director to the combined company’s board and safeguards for handling ongoing legal and investigative processes in the best interests of ZEEL’s shareholders and directors, as well as changes to the plan to incorporate the same.
