Zee, Sony end all disputes, $10 bn merger deal scrapped amicably
Mumbai, Aug 27 : ZEE Entertainment Enterprises Ltd. (ZEE), and Culver Max Entertainment Pvt. Ltd. (CMEPL) operating as Sony Pictures Networks India (SPNI), together with its group company Bangla Entertainment Pvt. Ltd. (BEPL), have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the merger cooperation agreement and the composite scheme of arrangement, according to a statement issued by Zee.
As part of the settlement, the companies 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 fora.
The companies will also withdraw the respective composite schemes of arrangement from the NCLT and inform the relevant regulatory authorities, the statement said.
Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities on the other, the statement added.
ZEE shares jumped as much as 15 per cent to an intra-day high of Rs 154.90 on Tuesday, before cooling off to Rs 147.70, 10 per cent higher from the previous close.
In January this year, Sony Pictures Networks India (SPNI) terminated a proposed $10 billion merger deal with Zee Entertainment, calling off a December 2021 agreement.
Sony also sought a $90 million termination fee for alleged violations by Zee Entertainment of the terms of the merger agreement.
Zee had also sought a termination fee of $90 million from SPNI and its entity Bangla Entertainment Pvt. Ltd. (BEPL) on May 23 for withdrawing from the $10 billion merger.
The $10 billion mega-merger between Zee and Sony was called off in January this year after the two companies ran into a dispute over who would head the merged entity.
While ZEEL MD and CEO Punit Goenka was earlier agreed upon as the candidate to take over the company, Sony reportedly was not in favour of Goenka taking charge after he came under the scanner of a SEBI investigation.
The companies then ended up in legal disputes over the issue, with each blaming the other for a breach of the terms of the agreement.