New Delhi (Capital of India): Zee Entertainment Enterprises and Sony Group Corporation’s India units, Culver Max Entertainment, and Bangla Entertainment, have reached a comprehensive non-cash settlement, resolving all disputes related to their failed merger.
The companies announced that they have mutually agreed to withdraw all claims in the ongoing arbitration at the Singapore International Arbitration Centre (SIAC) and other related legal proceedings, including those before the National Company Law Tribunal (NCLT).
“This settlement stems from a mutual understanding to independently pursue future growth opportunities, marking the definitive conclusion of all disputes,” the companies stated on Tuesday.
Sony had terminated the merger with Zee in January 2023, citing Zee’s non-fulfillment of closing conditions and seeking $90 million in termination fees through SIAC arbitration. Zee responded by filing an application with the NCLT, later withdrawing it in June, and subsequently terminated the merger in May, demanding a $90 million termination fee from Sony.
The merger, originally agreed upon in December 2021, would have seen Sony holding 50.86% of the new entity, with Zee shareholders owning 45.15% and Zee founders retaining a 3.99% stake. Sony had also committed to investing $1.5 billion into the merged entity.
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