Subhash Chandra announces: Promoter family to boost Zee stake to 26%, avoiding debt
Regarding the Zee-Sony deal, Subhas Chandra stated, “I’ve urged my close and extended family to enhance their ownership in Zee.”
It was reported that the family of Zee Entertainment founder Subhash Chandra plans to increase their ownership in the media firm from the current 4% to 26%. This development comes shortly after the collapse of the merger between Zee and Sony’s India unit, which ended a two-year negotiation period. Following the termination of the $10 billion merger deal by Sony last week, the company sought $90 million in termination fees from Zee, alleging breaches of the agreement terms. Zee has refuted these allegations.
In a conversation with Mint, Subhas Chandra stated, “I’ve recommended to my immediate and extended family to enhance their ownership in Zee… Our ultimate goal is to return to 26%, but it will require some time.”
Subhash Chandra, who founded Zee in 1992 and currently serves as its chairman emeritus, emphasized the company’s stance on financing. “Yes, we will require a substantial amount of capital. However, we are resolute in our decision not to seek external funding. Debt is not something we’re interested in,” he stated.
Following Sony Group’s decision to terminate the merger deal, Zee Entertainment Enterprises Ltd (ZEEL) took legal action by approaching the National Company Law Tribunal (NCLT). Zee filed a petition against Sony, alleging that Sony Group’s Culver Max and BEPL (Bangla Entertainment Pvt Ltd) had “failed to fulfill their obligations” by withdrawing from the merger agreement.
Both companies have not disclosed the specific conditions of the failed merger, but a key point of contention was Zee’s proposal for its CEO Punit Goenka to lead the combined entity. Subhash Chandra expressed confidence in Punit’s leadership, stating, “Punit is the right person to lead the company, and there is no issue with Zee.”
“I have also approached my younger son, Amit Goenka, a successful NRI, and he has agreed to invest in Zee instead of other ventures,” he mentioned. As a promoter, he stated that he was “seriously contemplating” filing a criminal case against Sony.
“If I were the CEO of the company, I would have already taken legal action against them,” he remarked, criticizing Sony for its “deceptive tactics” of initiating the merger process only to withdraw later.
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