Shares of Zee Entertainment Enterprises Ltd. rose by 2% to touch a day’s high of Rs 139.20 on 13th September. This came after the company announced the withdrawal of its long-discussed merger plan with Culver Max Entertainment Pvt. Ltd. (formerly Sony Pictures Networks India) and Bangla Entertainment Pvt. Ltd. (BEPL).

The National Company Law Tribunal (NCLT) approved the recall of the merger order on 5th September 2024, allowing Zee Entertainment to withdraw the scheme. This move came after a settlement was reached between the parties involved.

In the stock exchange filing, Zee explained that the merger, initially approved in August 2023, has been called off by mutual consent. The company has pointed out that one of the major reasons for withdrawal from the merger was to ensure amicable resolution of all ongoing disputes and litigations.

The purpose of the merger between ZEEL and Culver Max was to harness the dominance of Zee in the market and its entertainment assets. This was not to be, as delays and litigation caused the parties to review the terms of the agreement.

On 27th August 2024, the company’s board decided to withdraw from the merger, and with the NCLT’s approval, the merger agreement is now void. As part of the settlement, ZEEL will contribute Rs 50,000 to Bharat Kosh.

At 11:28 AM, the shares of Zee Entertainment were trading 1.61% higher at Rs 136.90 on NSE.

Unlock profitable opportunities every day! Unicorn Signals provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Unicorn Signals and start winning now!