To withdraw legal proceedings in NCLT and other forums
MUMBAI: Zee Entertainment Enterprises has announced that it has agreed to settle all disputes with Sony regarding the termination of their merger.
In a statement, Zee Entertainment said, “As part of the settlement, the companies (Zee and Sony Pictures Networks India) have mutually agreed to withdraw all respective claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre, as well as all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums.”
Termination fees
Earlier this year, Sony Pictures Networks India (SPNI) terminated a proposed $10 billion merger with Zee Entertainment, voiding an agreement made in December 2021. Sony sought a $90 million termination fee, alleging that Zee Entertainment had breached the terms of the merger agreement.
In May, Zee had demanded a termination fee of $90 million (Rs750 crore) from SPNI and its subsidiary, Bangla Entertainment Pvt. Ltd. (BEPL), asserting in an exchange filing,
“Culver Max and BEPL have failed to comply with their obligations under the Merger Cooperation Agreement (MCA). As a result, the Company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee.”
Zee stocks jump
Following the announcement, Zee’s share price surged by as much as 15% today (August 27), reaching an intraday high of ₹154.9 before settling at ₹147.7, still up about 10% from the previous close.
