NCLT Reverses Approval for Zee-Sony Merger Following Settlement

16 Sep 2024 , 03:52 PM

The National Company Law Tribunal (NCLT) has permitted the withdrawal of its earlier approval for the Zee Entertainment and Sony Pictures Networks India merger.

The Mumbai bench of NCLT had recalled its August 10, 2023, order, approving the merger between Zee and Sony. The withdrawal was based on the “mutual consent” of both parties, who settled their dispute and passed resolutions to withdraw the merger scheme.

NCLT allowed the withdrawal and officially recalled its approval, as mentioned in Zee’s filing to the stock exchanges on Thursday.

Zee and Sony agreed to terminate the merger and settle all disputes regarding the failed $10 billion deal on August 27. Both companies agreed to withdraw all legal claims, including ongoing arbitration at SIAC and related NCLT proceedings.

Zee and Sony initially claimed $90 million each (around ₹748.7 Crore) as a termination fee for failing to comply with the Merger Cooperation Agreement signed in December 2021.

Sony exited the proposed $10.5 billion merger in January 2024 due to Zee’s inability to meet “closing conditions.” The merger agreement between ZEE and Sony Pictures Networks India (SPNI) was first established on December 22, 2021.