Zee Raises Concerns Over Ongoing Investigations, Urges Smooth Merger Process With Sony

Zee Entertainment Enterprises (ZEEL) has raised concerns over the potential impact of “continuous and repetitive” investigations on the company and its shareholders, as well as the ongoing merger process with Sony Pictures Networks India Pvt. Ltd. (Sony).

In a letter addressed to the Securities and Exchange Board of India (SEBI), ZEEL highlighted the advanced stage of the merger, with approvals already received from various regulators, stock exchanges, and the Competition Commission of India (CCI). The scheme has also been approved by an overwhelming 99.9 per cent of ZEEL’s equity shareholders.

ZEEL questioned the need for re-investigating or re-examining the matter, as the transactions in question date back to 2019. The company stated that it had already provided detailed explanations to both the stock exchanges and SEBI regarding the matter. ZEEL expressed its lack of involvement in the loan arrangements between Yes Bank and the borrowing entities, asserting that it had no privity of contract with Yes Bank. The misappropriation of ZEEL’s fixed deposit was a result of unilateral action by Yes Bank, without any action on ZEEL’s part.

ZEEL emphasised that it was itself a victim of the misappropriation by Yes Bank and had taken necessary steps to recover the funds and prevent any loss to its shareholders. The company highlighted its commitment to acting in the best interests of its shareholders by ensuring the recovery of funds. The merger with Sony represents a significant integration in the media industry and involves a substantial foreign direct investment of approximately USD 1.7 billion into India.