ZEEL shares fall 5% after Sony Pictures denies agreeing to merger extension deadline
Zee Entertainment Enterprises (ZEEL) fell nearly 5% to the day's low of Rs 267.15 on NSE on Tuesday after Sony Pictures Networks India (SPNI) said that it has not yet agreed to a deadline extension requested by ZEEL for their merger, and is looking forward to knowing how the latter planned to complete the remaining critical closing conditions.
The news did not go down well with the investors as significant selling pressure was seen on the counter. At 1:50 pm, over 2.59 crore shares changed hands on the NSE.
The stock is currently trading at a 10% discount from its 52-week high of Rs 299.70 it hit on December 7.
In a statement, SPNI said that ZEE's notice to the BSE and the NSE on December 17, seeking an extension of the merger deadline is «an acknowledgment that they will not be able to meet the December 21, 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, PTI reported quoting the company statement. «SPNI is required to start those conversations but has not yet agreed to a deadline extension,» the company said adding, «We look forward to hearing ZEE's proposals and how they plan to complete the remaining critical closing conditions.»
ZEEL has sought an extension in the December 21, 2023 deadline of its proposed merger with Culver Max Entertainment (CMEPL), formerly known as Sony Pictures Networks India.
ZEEL had approached Culver Max and Bangla Entertainment Pvt Ltd (BEPL) for an extension in the deadline to complete the proposed merger, which will create India's biggest media conglomerate, said regulatory updates.
CMEPL is an indirect wholly-owned subsidiary of Sony Group
