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Zee settles merger termination disputes with Sony, terminates $10 billion deal
Zee Entertainment settles disputes with Sony over merger termination, shares jump 15% to ₹154.9 before settling at ₹147.7, up 10% from previous close.
Zee Entertainment Enterprises said that it has entered into an agreement to settle all disputes with Sony regarding the termination of merger. Following this, the media firm's share price jumped as much as 15 per cent today (August 27). Zee stock jumped to an intraday high of ₹154.9 and cooled off to ₹147.7 but was still up about 10 per cent from the previous close.
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"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, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums," Zee Entertainment said in a statement.
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Earlier this year, Sony Pictures Networks India (SPNI) terminated a proposed $10 billion merger deal with Zee Entertainment, calling off a December 2021 agreement. Sony sought a $90 million termination fee on account of alleged breaches by Zee Entertainment of the terms of the merger agreement.
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Zee had sought termination fee of $90 million ( ₹750 crore) from SPNI and its entity Bangla Entertainment Pvt. Ltd. (BEPL) in May. At the time, the company had said in an exchange filing, “Culver Max and BEPL have failed to comply with their obligations under the Merger Cooperation Agreement (MCA). Therefore, the Company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee.”
