New Delhi. The National Company Law Appellate Tribunal (NCLAT) has set aside the NCLT order directing reconsideration of the approval granted to the merger of Zee Entertainment and Sony Pictures.
The National Company Law Tribunal (NCLT) had earlier directed BSE and NSE to reconsider their decision to approve the merger deal. An appeal was filed in the NCLAT against this order issued on May 11.
A two-member bench of the appellate tribunal has asked the NCLT to take a fresh look at the merger deal between Zee Entertainment and Culver Max Entertainment (formerly Sony Pictures Networks India). Along with this, he has also asked NCLT to know the opinion of all the parties.
Appealing against the order of the Mumbai bench of NCLT, Zee Entertainment had said that it was not given a proper opportunity to present its case. Along with this, it also argued that NCLT has no jurisdiction on non-competition points. Under this merger deal, Sony will hold 50.86 percent stake in the combined company.
Four per cent will be held by the founders of Zee and the rest will go to other shareholders of Zee Entertainment. Apart from this, a non-compete fee of Rs 1,100 crore will also be paid by Sony Group to the promoters of Essel Group.
Pc:The Vocal News Hindi