Zee Entertainment moves NCLT, SIAC against Sony's $10bn merger termination
What's the story
Zee Entertainment is taking legal action against Sony's decision to terminate their proposed $10 billion merger deal, seeking intervention from the National Company Law Tribunal (NCLT). Zee has requested Culver Max and Bangla Entertainment Pvt Ltd (BEPL) to withdraw the termination and commit to the merger scheme approved by the NCLT. Sony, on the other hand, is demanding a Rs. 748.5 crore, termination fee and has approached the Singapore International Arbitration Centre (SIAC) for resolution.
Legal
Zee seeks NCLT directions to implement merger scheme
The Mumbai bench of NCLT has been approached by Zee for directions to implement the merger scheme. Moreover, Zee is contesting Culver Max and BEPL's claims in arbitration proceedings before the SIAC. In a statement, Zee said, "The company has called upon Culver Max and BEPL to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the merger scheme."
Terminology
Sony cites unsatisfied closing conditions for termination
Two days ago, Sony announced the termination of the merger deal, stating that certain "closing conditions" were not met despite "good faith discussions" with Zee. The companies failed to agree on an extension by their deadline of January 21. Sony expressed disappointment but remains committed to expanding its market presence.
Stock Market
A look at Zee's share prices
Yesterday on the Bombay Stock Exchange (BSE) Zee saw the highest single-day fall of 30.5%, and ended at Rs. 152.50 per share. Meanwhile, today, it opened at Rs. 158 and settled at Rs. 166.35 apiece. It is up 6.7% compared to yesterday. On the National Stock Exchange (NSE), it finished at Rs. 165.75 per stock (up 6.28% higher than yesterday).