New Delhi: Zee Entertainment has entered into a settlement agreement with Culver Max Entertainment Private Limited (CMEPL) to settle all disputes regarding the termination of merger. CMEPL was earlier called Sony India.
The two companies released a joint statement conforming that both the firms have settled their disputes related to the failed USD 10-billion merger and have agreed to withdraw all claims against each other.
“ZEE Entertainment Enterprises Ltd and Culver Max Entertainment Pvt. Ltd. (CMEPL) have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the merger co-operation agreement and the composite scheme of arrangement,” the statement stated.
The Zeel share price jumped to touch intraday high of Rs 154.9. The stock later came down to Rs 147.7, still up about 10 percent from August 26 closing price.
As per the information available at exchanges, Zee Entertainment has entered into a settlement agreement with Culver Max Entertainment Private Limited and Bangla Entertainment Private Limited (BEPL) to withdraw the respective Composite Schemes of Arrangement from the NCLT and also claims before Singapore International Arbitration Centre.
Both the media giants have mutually agreed to the settlement like withdrawing all claims and $90 million termination fee.
Sony Corporation had terminated the USD 10 billion merger agreement with ZEEL, while seeking USD 90 million for breach of conditions besides initiating arbitration. Reports had then suggested that Sony cancelled the deal as it was against Subhash Chandra’s son Punit Goenka, who was investigated by Sebi over fraud allegations, to continue to be at the helm of affairs after the merger. Sony wanted its executive NP Singh to be appointed as the CMD of the merged entity.
“SPNI, a wholly-owned subsidiary of Sony Group Corporation, today issued a notice terminating the definitive agreements entered into by SPNI and Zee Entertainment Enterprises Ltd (ZEEL) relating to the merger of ZEEL with and into SPNI, which was…announced on December 22, 2021,” a statement by Sony Group Corporation released in the last week of January 2024 had mentioned.
ZEEL had initiated legal actions to contest the claims of USD 90 million (Rs 748.5 crore) filed by Sony Group before the Singapore International Arbitration Centre (SIAC).
ZEE Entertainment Enterprises Ltd and Sony Pictures Networks India on Tuesday said that they have amicably settled disputes over their failed merger. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
