ZEE shareholders approve merger with Sony

Zee Entertainment Enterprises (ZEE) shareholders on Friday voted in favour of the company’s proposed merger with Culver Max Entertainment (formerly Sony Pictures Networks India) at its extraordinary general meeting (EGM).
The EGM was convened as per National Company Law Tribunal’s (NCLT) order.

ZEE said in a statement that the proposal put forward was supported by 99.99% of its shareholders.

“The approval marks yet another firm and positive step forward, in the overall merger completion process,” the company said.

“On behalf of all the board members and management of ZEE, I would like to thank the equity shareholders of the company for recognising the value-accretive opportunities the proposed merger will deliver to all stakeholders,” said Punit Goenka, MD & CEO, ZEE. “The continued trust and overwhelming support by our equity shareholders towards the resolution of the composite scheme of arrangement, further strengthen our abilities to consistently deliver higher value as we move forward in this process.”

Earlier on August 24, the Mumbai bench of NCLT, presided by judicial member JV Subba Rao and technical member Anuradha Sanjay Bhatia, in its order had directed the ZEE management to hold a shareholder meeting on October 14 for voting on the proposed scheme of merger.

Suhail Nathani, Managing Partner, Economic Laws Practice, presided over the EGM as the chairperson.

Earlier this month, ZEE received approval from the Competition Commission of India (CCI), with certain modifications, for the proposed merger. The Company also received approvals from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in July.

ZEE and SPN had signed a definitive agreement to merge the two companies on December 22, last year.

The proposed merger will see ZEE merging into SPN and, after closing, the merged company will be publicly listed in India.

As per the agreement, Goenka will lead the merged company as its MD and CEO. The board will have nine directors, of whom the Sony Group will nominate five, while three will be independent.