The National Company Law Appellate Tribunal (NCLAT) on May 25 deferred to May 26 the hearing of Zee Entertainment Enterprises Ltd's appeal against the order of National Company Law Tribunal (NCLT), directing the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to reconsider initial approvals to the Zee-Sony merger.
The case is expected to be heard in the second half of May 26.
The NCLT had on May 11 directed the exchanges to reassess and validate the non-compete clause of the merger, which was approved by the market regulator Securities and Exchange Board of India (Sebi).
Earlier this month, Sebi issued an adverse interim ruling against an entity of the Essel Group that founded Zee, which led to the NCLT directive.
The proposed deal would see Sony Pictures Entertainment indirectly hold a 50.86 percent stake in the combined company, while Zee's founders will own 3.99 percent and the remaining 45.15 percent will belong to other shareholders, including the public.
A non-compete fee of Rs 1,100 crore will also be paid by Sony to the promoters of the Essel Group. A definitive merger agreement between Zee and Sony was signed in December 2021.
The proposal has been approved by the shareholders of BSE, NSE, and Zee. The merger has also been approved with modifications by the Competition Commission of India.
The merger between Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises (ZEEL) is expected to be completed by September, Sony Corporation CEO Kenichiro Yoshida has said.
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