A segment of Zee Entertainment Enterprises Limited’s (ZEEL) public shareholders has reportedly penned a letter to the company, requesting details on the sequence of events leading to the termination of the merger agreement with Sony Pictures Network, according to sources familiar with the matter.
The shareholders, including foreign portfolio investors (FPI), mutual funds, and retail investors, have specifically asked for the contents of Sony’s termination letter to be disclosed publicly. Sources suggest that Sony, in a 62-page termination letter, has cited several instances of ZEEL not fulfilling condition precedents (CP).
An email inquiry to a Zee group spokesperson has reportedly gone unanswered.
Furthermore, the shareholders have raised concerns about the board not presenting the true picture of the negotiations with Sony. Despite reports indicating strained relations and doubts about the merger deadline extension, ZEEL had consistently maintained that talks were progressing positively.
A source noted, “Shareholders have incurred significant losses due to the termination of the merger,” highlighting the financial impact on investors resulting from the concluded merger deal.