Zee-Sony merger failure a headache for Punit Goenka as a familiar threat looms
economictimes.indiatimes.comSony’s India arm, but there is a new threat for the company, given the precariously low promoter holding in the Indian broadcaster, per a TOI report.
Punit Goenka, the Managing Director and CEO of Zee owns a 4 per cent stake in the company. A merger between Sony and Zee would’ve created a $10 billion broadcasting entity, India’s largest.
Rules say that any person with or without holding any shares in a listed target company, may offer to acquire shares of the entity subject to a minimum offer size of 26 per cent. Furthermore, any shareholder or group of shareholders holding at least 10 per cent in a listed company may move a resolution to change its directors.
Zee's major institutional investors include ICICI Prudential Mutual Fund (7 per cent), Nippon India Mutual Fund (6 per cent), HDFC Mutual Fund (5 per cent), and LIC (5 per cent).
Sony Pictures Network India, now known as Culver Max Entertainment Private Ltd, had signed an agreement to merge with Zee in December 2021.
Zee-Sony merger cancelled: CLSA downgrades Zee shares to sell
At the time, the company’s then-largest shareholder Atlanta-based Invesco held an 18 per cent stake. It wanted a change in the board of the company and wanted Goenka to step down. However, nerves were soothed following the merger announcement, even as it pared most of its stake in the broadcaster.
As part of the agreement, Goenka was to lead the merged entity. Yet, following Goenka and Zee-founder Shubhash Chandra’s run-in with markets regulator SEBI, Sony wanted a change in leadership and suggested its long-time executive NP Singh instead, ET had reported in November.
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Japan-based Sony Group-owned companies had also
