Zee CEO, In Ayodhya, Posts On Sony Merger Breakdown : “Sign From The Lord” : Punit Goenka, CEO of Zed Entertainment Enterprises Ltd (ZEEL), gave an update about a cataclysmic development in his firm while attending the Ram temple consecration event in Ayodhya, Uttar Pradesh.
Sony Group Corp. of Japan has delivered ZEEL a merger termination notice, as well as a $90 million demand for purported breaches of the merger collaboration agreement by Mr Goenka’s company.
The ZEEL managing director and CEO, who is among the high-profile guests invited to the pran prathistha ceremony, referred to recent developments in his company as “a sign from the Lord” in a post on X.
Zee CEO, In Ayodhya, Posts On Sony Merger Breakdown : “Sign From The Lord”
“As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent two years envisioning and working towards had fallen through, despite my finest and most honest efforts,” Goenka said in a statement.
“I believe this is a sign from the Lord. I resolve to move forward in a positive manner and try to strengthen Bharat’s pioneering M&E Company for the benefit of all stakeholders. “Jai Shri Ram,” he said.
As I arrived at Ayodhya early this morning for the auspicious occasion of Pran Pratishtha, I received a message that the deal that I have spent 2 years envisioning and working towards had fallen through, despite my bfinest and most honest efforts.
— Punit Goenka (@punitgoenka) January 22, 2024
I believe this to be a sign from… pic.twitter.com/gASsM4NdKq
ZEEL had a board meeting today to discuss the merger termination notice issued by Japan’s Sony Group Corp.
In a letter addressed to ZEEL today, the Japanese corporation stated that the termination was due to unmet merger agreement criteria. The merger, which was announced more than two years ago, came to a halt over the merged company’s leadership, as a market regulator investigated Mr Goenka.
“ZEEL categorically denies all the assertions raised by Culver Max and BEPL on the alleged breaches under the terms of the MCA, including their claims for the termination fee,” ZEEL stated in a filing with the stock exchange.
Culver Max Entertainment Pvt Ltd was previously known as Sony Pictures Networks India, and BEPL stands for Bangla Entertainment Pvt Ltd.
“… ZEEL also held several deliberations and good faith negotiations with Culver Max and BEPL, with a view to consider an extension of the merger completion timeline, that did not materialise,” ZEEL said in a statement.
ZEEL stated that Mr Goenka was willing to step down in the interest of the merger, and proposals in this regard were discussed, including the appointment of a director on the board of the merged company, protections for the conduct of pending investigations and legal proceedings in the greatest interest of ZEEL’s directors and shareholders, and the subsequent modifications to the scheme to incorporate the same.
