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Zee-Sony deal: Emergency arbitration in Singapore tomorrow, claims report
Zee-Sony merger deal: Zee initiated legal action to contest Sony's claims of $90 million as a termination fee.
The hearing for an emergency arbitration in the Zee-Sony merger will take place at the Singapore International Arbitration Centre (SIAC) tomorrow, it was reported after the deal was called off last week. Sony Group Corp, the Japanese parent company of Sony Picture Network India (SPNI) and Bangla Entertainment Pvt Ltd (BEPL) announced the termination of the 10 billion dollar agreement with ZEEL as it sought USD 90 million for breach of conditions.
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Zee initiated legal action to contest Sony's claims of $90 million as a termination fee for which Sony moved the Singapore International Arbitration Centre (SIAC). This comes as Zee's stock crashed in the markets. On January 23, Zee suffered the highest single-day fall of 30.50 per cent, and ended at ₹152.50 but the share price partially recovered the next day to settle at ₹166.35 apiece on the BSE.
Why was the merger called off
Sony said ZEEL did not satisfy the merger conditions despite engaging in discussions to extend the end date for consummation of the transaction.
ZEEL MD & CEO Punit Goenka said in a townhall meeting, “Our industry is witnessing rapid changes, and these winds of change are giving us a new shape. We have to mold ourselves to be well-positioned to capitalise on the opportunities coming our way. We have been leaders over the last 3 decades and have delivered value to our stakeholders, year on year.”
