Zee MD: “Sony merger will go through”
June 23, 2023
By Chris Forrester
The troubled merger between Sony India and Zee Enterprises “will go through” according to Zee MD Punit Goenka. He added the merger would happen “whether or not” he was in post as MD of the merged company.
Goenka, and his father Subhash Chandra, are the subject of legal actions from India’s Securities and Exchange Board of India (SEBI) which has levied a one-year ban against Zee Group Chairman Chandra and Goenka, and alleging the two had been actively involved in diverting company funds to the group’s related entities.
Punik Goenka was set to become the merged entity’s managing director and CEO.
In an interview with Economic Times, Punit Goenka stated: “The ZEE-Sony merger holds immense significance, regardless of my position as CEO. The resulting entity will be under Sony’s control, and they have chosen to retain me as a promoter, MD, and CEO.”
“However, if the law prevents me from holding those positions, should the merger be allowed to fail? Such an outcome would negatively impact everyone involved in the ecosystem, as well as the sector as a whole,” Goenka said.
The merger was announced back in 2021.
Chandra and Goenka are in the process of challenging the ban at an Indian appeals tribunal, which is yet to rule on the case. SEBI is arguing the appeals should be dismissed “and no relief must be granted in the interest of the securities market”.