Zee Entertainment Enterprises (ZEE) made a significant decision on Tuesday, opting to withdraw its merger implementation application lodged against Sony Corporation before the National Company Law Tribunal (NCLT), Mumbai Bench.
The implementation application, originally submitted by ZEE in January 2024, sought directives regarding the execution of the Composite Scheme of Arrangement between ZEE and Sony.
In an official statement to the exchanges, ZEE communicated that the withdrawal of the implementation application was a strategic move advised by the board following extensive consultations with legal experts. The company emphasized that this step is geared towards fostering growth and assessing strategic opportunities aimed at maximizing value for all shareholders.
Despite withdrawing its application from the NCLT, ZEE remains committed to pursuing its arbitration against Sony to seek damages at the Singapore International Arbitration Centre (SIAC). This decision underscores ZEE’s determination to vigorously pursue its case through alternative channels.
“The immediate priority for the company is to focus on performance and achieve its targeted goals for the future. We have reviewed the key steps taken by the management over the last few months that are result-oriented, and we believe that the Company is well poised to chart a stronger growth trajectory. Hence, after seeking an independent legal opinion, the board has advised the management of the company to withdraw the implementation application filed before the Hon’ble NCLT. The board remains focused towards maximising shareholder value, strengthening the company’s claims in arbitration and enabling the company to explore strategic opportunities,” Chairman, R Gopalan said.
