According to Subhash Chandra, chairman emeritus of Zed Entertainment Enterprises Ltd., in an interview on Monday, the promoter family wants to increase its ownership of the company by 5% as soon as possible and ultimately boost it to 26%. In an interview with The Economic Times (ET), Chandra stated, "I've personally encouraged both my immediate and extended family to increase their holdings in Zed," raising the possibility that they might not be able to acquire outside funding for the purchase.
"I've also approached my younger son, Amit Goenka, a successful NRI and he has agreed to invest in Zed instead of other companies," he stated. Chandra added that he was "seriously considering" bringing a criminal complaint against Sony in his capacity as a promoter. He declared, "If I were the CEO of the company, I would have sued them already," and claimed that the Japanese corporation's decision to initiate the merger process and then back out was a "criminal design."
The $10 billion merger agreement that Sony's parent company, Culver Max Entertainment, had inked with Zed two years prior was canceled earlier this month. In addition, the business had demanded from Zed a termination fee of $90 million due to purported contract violations. The regulatory investigation of Punit Goenka, the chief executive of Zed who was to head the combined company, is said to have displeased Sony. Zed subsequently declared that it "categorically denies" all the allegations.
Both Businesses have Filed Lawsuits Against One Another
Chandra stated during the interview that Goenka's retirement was discussed within the family the previous year and that "Punit and the family collectively decided he should step aside". He claimed that although Sony was informed of the decision, Sony did not find it acceptable. "I believe this was Sony's strategy all along to engage with Zed and eventually withdraw, portraying Zed as vulnerable," he stated. Chandra went on to say that it will be shown in the lawsuit filed against Sony that Zed complied with the majority of the requirements.
