In 2021, Sony and Zee initiated a deal to form a $10 billion entertainment company. However, negotiations collapsed, leading Sony to officially terminate the deal in January 2024.
The Emergency Arbitrator at the Singapore International Arbitration Center (SIAC) has rejected Sony’s application against Zee Entertainment. Zee announced on Sunday that the emergency arbitrator denied the application for emergency interim relief filed by Sony’s Indian entities, Culver Max, and BEPL.
The arbitrator has ruled that it lacks jurisdiction or authority to enjoin Zee from pursuing the merger scheme through the National Company Law Tribunal (NCLT), stating that these matters fall within the statutory system and are under the purview of the NCLT to decide.
In 2021, Sony’s Indian entity Culver Max Entertainment (CME) and Zee engaged in discussions to establish a $10 billion entertainment company. The negotiations eventually collapsed, leading Sony to cancel the deal in January 2024.
Following the termination, Sony’s Culver Max sought a termination fee of $90 million from Zee, alleging breaches of the terms of the Merger Co-operation Agreement (MCA). In response, Zee took legal action to contest Culver Max’s claims at the Singapore International Arbitration Center (SIAC).
Zee has taken the step of approaching the National Company Law Tribunal (NCLT), requesting a directive to execute the merger. The company argues that Sony Group’s Culver Max and BEPL (Bangla Entertainment Pvt Ltd), slated for merging with ZEEL, have defaulted on their obligations to carry out the sanctioned scheme of merger as per NCLT’s approval.
The National Company Law Tribunal (NCLT) approved the merger scheme of ZEEL with Sony group entities Culver Max Entertainment (formerly known as Sony Pictures Networks India) and BEPL on August 10, 2023. Zee has urged Culver Max and BEPL to retract the termination and affirm their commitment to fulfill their obligations in implementing the sanctioned Merger Scheme as directed by the NCLT.
Sony Group terminated the deal, stating that ZEEL failed to meet the merger conditions, even after discussions to extend the consummation deadline. However, ZEEL countered all claims made by Culver Max and BEPL regarding alleged breaches of the agreement, including those related to the termination fee. ZEEL asserts its right to challenge and refute these claims, preserving its position in this matter.
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