Zee Entertainment Shares Surge as Emergency Arbitration Hearing for Scrapped Sony Merger Looms

30 Jan 2024 , 01:23 PM

Zee Entertainment shares surged by 8.9 % on January 30 amid reports of an emergency arbitration hearing for the terminated Zee-Sony merger scheduled in Singapore.

Sony, the Japanese firm, called off the $10-billion merger with Zee Entertainment, citing Zee’s failure to meet financial terms and provide a plan to address the issues.

On January 24, Zee Entertainment moved the National Company Law Tribunal (NCLT) and Singapore International Arbitration Centre (SIAC) against Sony Pictures, with an emergency hearing set for January 31 at SIAC.

Zee also approached the Mumbai bench of NCLT, seeking directions to implement the merger scheme that Sony canceled on January 22.

Public shareholders of Zee Entertainment have written to the company, seeking details about the events leading to the termination of the merger agreement with Sony Pictures Network.

Since reports on January 18 hinted at the merger’s cancellation, Zee shares have plummeted over 30 %, experiencing a 40 % drop in the past month.

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