MUMBAI: In its first reaction after Sebi’s order against Essel Group Chairman Subhash Chandra and his son Punit Goenka, Sony Pictures Entertainment said on Wednesday it took the order of the regulator very seriously and would continue to monitor developments, which might affect the merger deal.
Zee and an Indian unit of Japan’s Sony Group announced a merger deal in 2021 to create a $10 billion TV enterprise, with Goenka set to become the merged entity’s managing director and CEO.
“There have been several erroneous press reports recently speculating about the future of Zee’s planned merger with SPNI (Sony Pictures Networks India) following Sebi’s interim order against Chandra and Goenka. We take seriously the Sebi interim order and will continue to monitor developments that may affect the deal,” Sony Pictures Entertainment statement said on Wednesday.
In its interim order on June 12, the Securities and Exchange Board of India (Sebi) barred Chandra and Goenka from holding the position of director or key managerial personnel in any listed company for siphoning off funds of the media firm. Both Chandra and Goenka moved SAT seeking stay on the Sebi order, citing injustice. With Sebi’s recent orders, experts are expressing concerns that this might delay the merger. The US-based brokerage BofA Securities said in a recent report that Zee-Sony merger is at risk after Sebi order.