Zee Entertainment Enterprises Ltd (ZEEL) said on April 16 that it has decided to withdraw the merger implementation application filed before the National Company Law Tribunal (NCLT), Mumbai bench against Sony.
The decision was taken by the Board after seeking appropriate legal advice, Zee said in a statement. "This decision will also enable the Company to pursue growth and evaluate strategic opportunities to generate higher value for all shareholders. The Board remains committed towards reviewing the strategic action-oriented steps taken by the management and providing timely guidance."
The implementation application was filed by ZEE on January 24 seeking directions on the implementation of the Composite Scheme of Arrangement between ZEE, Culver Max Entertainment Pvt. Ltd. and Bangla Entertainment Pvt. Ltd.
This decision to withdraw the implementation application will enable the company to continue to aggressively pursue all its claims against Sony in the ongoing arbitration proceedings at the Singapore International Arbitration Centre (SIAC) and in other forums, Zee added.
R. Gopalan, Chairman, ZEE said, “The immediate priority for the Company is to focus on performance and achieve its targeted goals for the future. 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 NCLT.
"The Board remains focused towards maximizing shareholder value, strengthening the Company’s claims in arbitration and enabling the Company to explore strategic opportunities," Gopalan added.
Under the guidance of the Board, the management of the company has taken significant efforts to enhance the productivity levels by focusing on a three-pronged approach centred around Frugality, Optimization and a sharp focus on Quality Content. In line with this approach, the company has streamlined its structure, to enhance the content creation, distribution and monetization process.
The Board has also instituted a Monthly Management Mentorship (3M) Program to regularly review and advise the management on critical business aspects.
The concerted efforts being taken by the Board and the management are aimed towards achieving robust growth to consistently generate higher value for shareholders.
Earlier on January 22, Sony Group Corp called off a USD 10 billion merger of its India unit with ZEEL, following a stalemate over who will lead the merged entity. The deal was announced more than two years back. Sony had sought USD 90 million as break-up fees for violating the terms of the merger pact and invoked arbitration. In a statement on Tuesday, ZEEL said the steps taken by it to withdraw the implementation application from NCLT are based on the legal advice received by the Board. In a statement on Tuesday, ZEEL said the steps taken by it to withdraw the implementation application from NCLT are based on the legal advice received by the Board.
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