More problems in Sony-Zee merger
September 19, 2023
By Chris Forrester
The latest allegations to hinder the long-awaited merger between Zee Entertainment and Sony’s India assets are that an ‘approval’ for the merger was illegal.
Axis Finance has filed a petition to the National Company Law Appellate Tribunal (NCLAT) that the l National Company Law Tribunal (NCLT) which approved the Zee-Sony merger made its decision in ‘contravention’ of a regulatory order against Punit Goenka, former MD/CEO of Zee Entertainment Enterprises Ltd (ZEEL).
The NCLT ‘approval’ was granted on August 10th.
A 43-page objection to the merger was filed by Axis Finance on September 14th, saying – in essence – that the NCLT has ignored an order made by the Securities and Exchange Board of India (SEBI) which ruled that Punit Goenka and his father, Subhash Chandra must not hold any key managerial positions in the merged businesses. The filing argues that this SEBI ruling must first be resolved.