Zee Entertainment Enterprises Ltd (ZEEL) witnessed its shares gain almost 4.5% on Wednesday after the company provided clarification regarding reports of a potential call-off of its $10 billion merger with Sony. 

Shares of ZEE Ltd hit an intraday of Rs 267.80, up 4.48% from its previous close on the National Stock Exchange (NSE). The stock closed 1.11% higher than its last close at Rs 259.15.

Earlier on Monday, a Bloomberg report claimed that the Sony Group Corp was planning to call off the merger pact of its India unit with Zee Entertainment. 

In an exchange filing dated January 9, ZEEL issued a clarification on the reports, calling them “baseless” and “factually incorrect.” The company added that it is committed to the proposed merger with Sony and is continuing to work towards a successful closure of the same.

The Sony Group also mentioned that the merger talks with Zee are ongoing and that they will continue till January 20.

The merger deal between Zee Entertainment and Sony Pictures Networks India was signed in 2021. It was expected to be completed before December 21, 2023, with a grace period of one month to complete the transaction.