Zee Entertainment Enterprises and Sony Group Corporation’s India units Culver Max Entertainment and Bangla Entertainment have reached a comprehensive non-cash settlement and resolved all disputes related to the failed merger deal between the companies.
In a statement, the companies said they have mutually agreed to withdraw all respective claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre (SIAC) and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums.
“The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media and entertainment landscape, signifying the definitive conclusion of all disputes,” the two companies said in a statement on Tuesday.
Incidentally, the announcement comes a day after Gaurav Banerjee, the new MD and CEO of SPNI, took charge.
On January 22, Sony Group terminated its merger deal with Zee and initiated arbitration proceedings against the Indian entertainment company in SIAC seeking $90 million in termination fees.
The merger deal, which was two years in the making, was called off by Sony over Zee’s non-fulfilment of merger closing conditions. The leadership of the combined entity was another sticking point between the companies.
Following the termination of the deal, Zee filed an application before the NCLT seeking directions for Culver Max and Bangla Entertainment to implement the merger deal. In June, the NCLT permitted Zee to withdraw its application.
In a tit-for-tat move, Zee terminated the merger deal with Culver Max and Bangla Entertainment in May and called upon both companies to pay a termination fee of $90 million.
Sony and Zee signed a merger agreement in December 2021 under which Sony would have held 50.86% of the new company, while other Zee shareholders would have owned a 45.15% stake. Zee founders would have held 3.99% of the combined entity.
Sony had also pledged to infuse $1.5 billion in the merged entity.
