Repetitive probes may hit Sony merger: Zee to Sebi – Times of India

MUMBAI: Continuous and repetitive investigations by Sebi could affect the merger of Zee Entertainment Enterprises and Sony Pictures Networks India (SPNI), the former has said. In a letter to the markets regulator, Zee pointed out that these probes create “prejudice for the company and shareholders, and can potentially impact the merger process”.
The letter, dated June 11, is part of Sebi’s 197-page reply to the Securities Appellate Tribunal (SAT), which will hear the Zee-Sebi matter on Monday. On June 12, Sebi barred Zee’s chairman emeritus Subhash Chandra Goenka and his son Punit Goenka, the company’s MD, from holding key managerial positions in listed companies. Both approached SAT the next day (June 13) challenging Sebi’s decision.
Sebi had previously approved Zee’s merger with SPNI (now known as CulverMax Entertainment), but the recent turn of events could delay the deal. Zee had announced the deal in September 2021, which allows Punit to be the MD of the combined entity and his family to hold up to 20% in it. The Sebi order, unless set aside by SAT,will prohibit Punit from holding directorship in the merged entity.
In the June 11 letter to Sebi, Zee said, “The transactions in the present matter pertain to the year 2019 and a detailed explanation has already been provided to stock exchanges and Sebi. ” It added that “it is beyond our comprehension as to why the present matter is being re-investigated/re-examined, when the cause of action pertaining to the matter is around four years old”. The matter relates to possession of Zee’s fixed deposits by Yes Bank in lieu of its loans. According to Sebi, Zee’s disclosures about the transactions were misleading.