The National Company Law Tribunal (NCLT) adjourned the hearing of Zee-Sony merger to July 10 adding to the ongoing delays of the merger that were expected to conclude by September this year.
According to the deal, Sony Pictures Entertainment would indirectly hold a 50.86 per cent stake in the combined company, while Zee’s founders would have a 3.99 per cent share and the other shareholders would hold the remaining 45.15 per cent.
A non-compete fee of Rs 1,100 crore also has to be paid by Sony to the promoters of the Essel Group, according to the merger agreement signed between Zee and Sony in December 2021.
BSE and National Stock Exchange (NSE) had initially approved the merger along with the Competition Commission of India (CCI), which made some modifications to the agreement.
The NCLT had reportedly instructed both BSE and NSE to review and validate the non-compete clause of the merger, which had been approved by both exchanges and market regulator, the Securities and Exchange Board of India (Sebi).
However, the National Company Law Appellate Tribunal (NCLAT) overturned this order on May 26, handing the case back to the NCLT to decide on the issue. The hearing was scheduled for July 6th but has been further delayed to July 10. Business Standard