Sony Withdraws Merger Application with Zee Entertainment, Legal Battles Continue

29 Feb 2024 , 01:44 PM

Sony Pictures Networks India withdraws merger application filed with the National Company Law Tribunal (NCLT) for merging its business with Zee Entertainment Enterprises Ltd (ZEEL), according to sources.

Sony terminated Mumbai bench two-year-long merger talks with Zee on January 22, ending the process aimed at creating a $10 billion media entity.

Sony entities Culver Max and Bangla Entertainment also terminate their merger agreement with Zee on January 22 and seek a $90 million termination fee due to unfulfilled conditions.

ZEEL moves NCLT and the Singapore International Arbitration Centre (SIAC) against Sony Pictures Network India’s termination of the merger deal on January 24.

ZEEL approaches Mumbai-bench of NCLT seeking directions to implement the merger scheme. Sony Group companies request SIAC to prevent ZEEL from seeking legal remedies until arbitration proceedings are complete.

However, SIAC’s emergency arbitrator denies interim relief to Sony group, stating no jurisdiction to prevent Zee from approaching NCLT. ZEEL shares decline nearly 30% post-merger termination.

ZEEL’s board approves constitution of an independent advisory committee to address misinformation, market rumors, and negative public opinion impacting investor wealth.

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