Zee Entertainment Enterprises said on Wednesday that Sony Pictures Networks India has agreed to discuss the extension of the merger deadline.

“The company is now in receipt of a communication from CMEPL and BEPL that they will enter into good faith negotiations as required under the Merger Cooperation Agreement (MCA) entered among the Parties, the Company, CMEPL and BEPL, with a view to discuss the extension of the date required to make the Scheme effective by a reasonable period of time,” Zee Entertainment said in a filing.

Zee said this is an update on the composite scheme of arrangement among the company, Bangla Entertainment Private Limited (BEPL), and Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Private Limited) (CMEPL) and their respective shareholders and creditors.

Zee Entertainment’s stock was down 7.3 per cent at Rs 251.80 on Wednesday.

Zee Entertainment had asked Culver Max Entertainment, formerly known as Sony Pictures Network India, to extend the date required to make the merger scheme effective.

The deadline for the merger is December 21.

“Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations), we hereby inform you that pursuant to the Merger Cooperation Agreement dated December 22, 2021 entered into among the Company, BEPL and CMEPL, the Company has requested CMEPL and BEPL to extend the Date required to make the Scheme effective, as per the terms of the Merger Cooperation Agreement,” Zee Entertainment said in an earlier filing.

Commenting on the development, Makarand M. Joshi, Founder at MMJC & Associates, a corporate compliance firm, said, “Outcome of this merger holds significant importance for the investors of Zee, not only financially, but emotionally too. Regulatory action against the promoters of Zee raised concerns on some critical issues of merger already agreed.

“Such cases of MNA would be looked up as a precedent by the corporates fraternity while doing due diligence for corporate restructuring and also by the regulators to review the existing regulatory framework.”