ZEE Entertainment shares surge nearly 12% after disputes settlement with Sony
New Delhi: Shares of ZEE Entertainment Enterprises Ltd (ZEEL) on Tuesday surged nearly 12 per cent after the company and Sony Pictures Networks India settled their six-month-long dispute related to the failed USD 10-billion merger.
The stock jumped 11.45 per cent to settle at Rs 150.85 apiece on the BSE. During the day, it zoomed 14.25 per cent to Rs 154.65.
On the NSE, shares of the firm soared 11.61 per cent to Rs 150.90 each.
The company’s market valuation climbed Rs 1,488.81 crore to Rs 14,489.44 crore.
ZEEL and Sony Pictures Networks India on Tuesday said they have settled their six-month-long dispute related to the failed USD 10-billion merger and have agreed to withdraw all claims against each other.
As part of the “comprehensive non-cash settlement” between ZEEL and Culver Max Entertainment Pvt Ltd (CMEPL), both “have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the SIAC and all related legal proceedings initiated in the NCLT and other forums,” a joint statement said.
“The companies will also withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities,” it said.
Both ZEE and Sony had claimed a termination fee of USD 90 million (around Rs 748.7 crore) from each other for not complying with the Merger Cooperation Agreement (MCA) signed in December 2021.
Sony had moved before the Singapore International Arbitration Centre (SIAC) immediately two days after the termination of the deal, saying ZEEL did not satisfy the merger conditions, initiated arbitration proceedings and claimed a termination fee of USD 90 million.
This was contested by ZEEL before the SIAC, which denied any interim relief to the Sony group against the Indian broadcaster.
ZEEL also moved the National Company Law Tribunal (NCLT) seeking implementation of the proposed merger and later withdrew its plea.
Later in May, ZEEL terminated the MCA by issuing a letter dated May 23, 2024, and it also sought a termination fee of USD 90 million from two Sony Group entities — Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment, and Bangla Entertainment (BEPL).
Under the settlement terms, none of the parties will have any “outstanding or continuing obligations or liabilities” to the other, the joint statement said.
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