Sony-Zee merger to go through says Punit Goenka - ET (updated)

Hong Kong Economic Times Holdings

22/06/2023 05:24

(Adds details from the report in paragraphs 2-5)
       BENGALURU, June 22 (Reuters) - The merger between ZEE
Entertainment  ZEE.NS  and the Indian unit of Japan's Sony
 6758.T  will go through, whether or not he is the CEO of the
merged company, Punit Goenka told the Economic Times in an
interview.
    The Zee-Sony merger announced in 2021 was set to create a
$10 billion TV enterprise, with Goenka becoming the merged
entity's managing director and CEO, but regulatory approvals are
still pending. 
    On Wednesday Sony said it took the India markets regulator's
ban on Zee Entertainment's founder and CEO from holding board
positions "seriously" and will monitor developments that may
affect its deal with Zee. 
    The Securities and Exchange Board of India imposed a
one-year ban against Zee Chairman Subhash Chandra, as well as
CEO Goenka for being been actively involved in diverting company
funds to the group's related entities.
    "The ZEE-Sony merger holds immense significance, regardless
of my position as CEO. The resulting entity will be under Sony's
control, and they have chosen to retain me as a promoter, MD,
and CEO," Goenka told the Economic Times.
     "However, if the law prevents me from holding those
positions, should the merger be allowed to fail? Such an outcome
would negatively impact everyone involved in the ecosystem, as
well as the sector as a whole."
        Zee did not immediately respond to Reuters requests for
comment. 
  
        
  

 (Reporting by Indranil Sarkar in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Indranil.Sarkar@thomsonreuters.com; Mobile:  +91
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