New Delhi: Sony Group Corp. is planning to call off the merger pact of its India unit with Zee Entertainment Enterprises Ltd, Bloomberg reported, citing people in know of the matter.
The Japanese conglomerate is looking to cancel the deal due to a standoff over whether Zee’s chief executive officer Punit Goenka, also its founder’s son, would lead the merged entity, the people told Bloomberg, asking not to be named as the information is not public.
Sony plans to file the termination notice before a January 20 extended deadline for closing the deal, saying some of the conditions necessary for the merger had not been met, one of the people said.
Sony is wary of Goenka’s appointment given a regulatory probe against him, Bloomberg had reported in November, citing people aware of the matter.
While Goenka received a reprieve from an appellate authority regarding the SEBI order, Sony continues to perceive the probe as a looming corporate governance issue, as reported by Bloomberg.
However, the latest report noted that discussions are still ongoing between the two sides and a resolution can still emerge before the deadline.