Sony Taking Indian Regulator Order Over Planned ZEE Merger “Very Seriously”
deadline.comSony Pictures Entertainment is taking an interim regulatory order against ZEE Entertainment directors Subhash Chandra and Punit Goenka “very seriously,” despite concerns over what it could mean for the two companies’ merger.
The India Securities and Exchange Board (SEBI) last week issued an order banning ZEE founder and Chairman Emeritus Chandra and Managing Director Goenka from taking key roles at any listed company over allegations of insider trader.
That had led to speculation the plan to merger Sony Pictures Networks India and ZEE into one company could be impacted. The new business would span TV channels, film assets and streaming services SonyLIV and ZEE5 Global.
Sony is planning to push on with the merger despite the increasingly uncertain backdrop, suggesting Indian press reports over the situation were incorrect. “There have been several erroneous press reports recently speculating about the future of ZEE’s planned merger with SPNI following SEBI’s interim order against Subhash Chandra and Punit Goenka,” said an SPE statement issued from Culver City. “We take very seriously the SEBI interim order and will continue to monitor developments that may affect the deal.” SEBI’s order claims Chandra and Goenka were siphoning off money from ZEE into Essel Group, ZEE’s parent company, effectively for their own financial gain.
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