The National Company Law Tribunal (NCLT) has approved the merger of Zee Entertainment Enterprises and Culver Max Entertainment, which will create a USD 10 billion media company.
The merger was first announced in December 2021, but was delayed after several creditors raised objections. The NCLT has dismissed all objections and the merger is expected to close in the coming months.
One of the main objections raised by creditors was the non-compete clause in the merger agreement. The clause would prevent Punit Goenka, the current CEO of Zee Entertainment, from holding a directorial position in any listed company for a year.
The creditors argued that this clause would be unfair to them, as it would limit Goenka’s ability to manage the merged company. The NCLT rejected this objection, ruling that the non-compete clause was reasonable and necessary to protect the interests of the merged company.
The tribunal also ruled that the regulatory bar on Goenka holding a directorial position would not prevent the merger from going through. The merger of Zee Entertainment and Culver Max Entertainment will create a media giant with a strong portfolio of television channels, OTT platforms, and film studios. The combined company will be better positioned to compete with other global media companies.