SPNI issues statement regarding merger with Zee

Sony Pictures Networks India (SPNI) has not yet consented to an extension of the merger deadline with Zee and is anticipating Zee Entertainment Enterprises' proposals regarding the completion of the remaining crucial closing conditions for the merger before deciding on the matter, as per a statement issued by Sony India.

 

The statement from SPNI said, “Zee’s notice to the Bombay Stock Exchange and the National Stock Exchange of India dated 17 December is an acknowledgement that they will not be able to meet the 21 December 2023 deadline to close the SPNI/Zee merger. The notice triggers an existing contractual provision in the deal that allows for both parties to discuss the possibility of extending the deadline. SPNI is required to start those conversations but has not yet agreed to a deadline extension. We look forward to hearing Zee’s proposals and how they plan to complete the remaining critical closing conditions.”

 

The statement clarified that the notice from Zee activates an established contractual provision, enabling both parties to engage in discussions regarding the potential extension of the deadline.  However, SPNI has yet to agree to a deadline extension even as it is willing to hear Zee's proposal for the same. 

 

The merger agreement inked in December 2021 between Sony and Zee with the anticipated conclusion within 8-10 months has been hindered two years later. The delay is attributed to legal challenges posed by financial institutions against ZEEL and a regulatory directive from SEBI against the company's promoters.

 

The two media companies signed agreements to combine their linear networks earlier this June, which consolidates the networks digital assets, production operations and program libraries.

 

The unfolding situation with SPNI's statement and Zee's notice to the BSE adds a layer of uncertainty to the anticipated merger and subsequent listing on the stock exchange.