Zee Entertainment Enterprises witnessed a dip of more than 3 percent on December 18, reflecting concerns over the postponement of the listing of the merged Zee-Sony entity. The delay is attributed to Zee’s request for an extension, pushing the expected listing timeline from January 2024 to March or April.
In an official filing with the exchange, Zee Entertainment Enterprises communicated its plea to extend the timeline for the merger scheme’s effectiveness. The request is directed towards Bangla Entertainment Private Limited (BEPL) and Sony Pictures Networks India Private Limited, now identified as Culver Max Entertainment Private Limited. These entities are integral to the merger cooperation agreement.
The original cut-off date for the merger stands at December 22, 2023, aligning with the two-year mark from the merger agreement’s signing on December 21, 2021. The extension request signifies the intricacies involved in finalizing the merger details and ensuring a seamless transition.
As of 1:15 pm, Zee Entertainment shares reflected a decline of 1.64%, trading at ₹273.05. The market response underscores investor apprehensions regarding the altered timeline and its potential implications for the merged entity’s market debut. The evolving situation prompts a critical evaluation of the factors influencing the delay and how it might impact the dynamics of the media industry in the coming months.
“The negotiations between both the parties could be resolved over the next 3-4 weeks, after which MIB (the Ministry of Information and Broadcasting) and record date, delisting/relisting process may take another six-eight weeks,” said Karan Taurani, senior vice-president, Elara Capital.
