Zee Entertainment Enterprises Ltd and Sony Group Corp have a one-month grace period beginning Thursday to complete its much-delayed $10 billion merger.

On Wednesday, Zee said it has started discussions with Culver Max Entertainment (CMEPL), earlier known as Sony Pictures Networks India, (SPNI) to extend the deadline that ended Thursday.

Sony had earlier said it had not yet agreed to the request by Zee to extend the merger deadline.

Zee had proposed the extension on Sunday.

While there was no communication from either party at the time of going to the press, it is learnt the discussions will look at the proposals made by the Indian company.

According to the terms of the merger agreement entered in 2021, an extension of 30 days can be granted after the December 21 deadline if either of the parties sought additional time.

While Zee requested the extension, it did not tell how much more time it wanted to complete the deal.

On Tuesday, Sony had said that it wanted to hear Zee’s proposals on completing the “remaining critical closing conditions”.

The deal, announced two years ago by Zee and Sony to merge their TV channels, streaming platforms and film assets, has been delayed after Sebi in August barred Zee CEO Punit Goenka, from the directorships of any listed company.

An Indian tribunal, however, lifted the ban on Goenka in October but had said he would have to cooperate with any investigation by the Securities and Exchange Board of India (Sebi).

Observers said the choice of the head of the merged entity is a likely sticking point.

The terms of 2021 said Zee MD and CEO Goenka will lead the merged entity.

However, with Sebi alleging that Goenka and his father Subhas Chandra have siphoned off funds, Culver Max is reportedly insisting on Sony India head N.P. Singh to lead the company.

The Zee scrip ended at Rs 261.95 on the BSE, a gain of Rs 10.15 or 4.03 per cent over the last close.

The merger has received regulatory approvals from fair trade regulator CCI, bourses NSE and BSE, shareholders and creditors of Zee. With inputs from Reuters