NCLAT sets aside NCLT order directing stock exchanges to reassess approvals for Zee-Sony merger

The National Company Law Appellate Tribunal (NCLAT) on Friday set aside an order passed by the National Company Law Tribunal (NCLT) in Mumbai directing stock exchanges to reassess their initial approvals granted for the merger of Zee Entertainment Enterprises Ltd (Zee) with Culver Max Entertainment (earlier known as Sony Pictures Networks India), Bar and Bench reported.

On May 11, the NCLT had directed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to issue updated no-objection certificates before June 16, 2023. ZEE then moved NCLAT against this order.

Zee contended that it was not provided adequate opportunity to present its side of the argument.

It also submitted that NCLT doesn't have jurisdiction over issues like non-compete fees, Bar and Bench reported.

Culver Max and ZEE had entered into a non-binding term sheet in September 2021. This was to bring together their digital assets, linear network, production operations and programme libraries.

The scheme of arrangement of the merger is that Sony Group will indirectly hold 50.86 per cent of the combined company.

ZEE founder will own around 4 per cent, while the rest will be distributed among the shareholders of ZEE, Bar and Becnh reported.

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