“There have been a number of faulty press stories just lately speculating about the way forward for ZEE’s deliberate merger with Sony Pictures Networks India following Sebi’s interim order in opposition to Subhash Chandra and Punit Goenka. We take very critically the SEBI interim order and can proceed to observe developments which will have an effect on the deal,” SPE stated in an announcement.
On June 12, Sebi handed an interim order in opposition to ZEE promoters following an investigation that discovered the 2 had reportedly abused their board positions in ZEE by “siphoning off funds for their very own profit,” the regulator stated. The regulator has directed ZEE to put the order earlier than its board inside seven days.
The Goenkas got 21 days to reply to the regulator’s order. Meanwhile, the Goenkas moved the securities appellate tribunal in opposition to the Sebi order on June 13. SAT admitted Chandra and Goenka’s attraction on June 15 and gave Sebi 48 hours to file its reply.
In its reply to SAT, Sebi reiterated that the Goenkas had diverted public funds to non-public entities. It added that the 2 are concerned in a myriad of various schemes and transactions by which huge quantities of public cash belonging to listed firms had been diverted to non-public entities owned and managed by these people. ZEE had additionally written a letter to Sebi stating that “steady and repetitive” inquiries into the identical reason behind motion injury the corporate and shareholders. It had additionally acknowledged that the transaction flagged by Sebi pertains to 2019, and {that a} detailed rationalization has already been offered to inventory exchanges and Sebi.
It added that the inquiries may also impact the corporate’s merger course of with Sony Pictures Networks India (SPNI).
The two firms had determined to merge operations in December 2021, with Sony proudly owning 50.86% of the mixed firm and ZEE shareholders, together with the promoters, holding the remaining 49.14%. ZEE’s founder would personal a 3.99% stake in the merged entity.
