Sony has served a termination letter to Zee Entertainment thereby ending the proposed $10 billion mega merger between its India operations and Zee.
Sony Group Corp is now seeking a $90 million in termination fees following termination of the merger plans which would have created India’s largest broadcasting company.
On the other hand, Zee refuted the claims made by Sony and emphasized its commitment to protect the long term interest of shareholders. Zee is likely to invoke arbitration proceedings to protect itself in the legal battle.
Sony on Monday announced its plan to end the merger of its India operations through Culver Max Entertainment with Zee, which was announced in December 2021.
SPNL, a wholly-owned subsidiary of Sony Group Corp, today issued a notice terminating the agreements entered into by SPNI and Zee Entertainment Enterprises Ltd relating to merger, says a statement by Sony Group Corporation.
The deal mandated that the merger was to be completed before December 21, 2023, including regulatory and other approvals with a grace period of one month to complete the transaction.
Zee said that its MD and CEO was agreeable to step down in the interest of the merger and also it was being considered to appoint a director on the Board of the Merged company. It was also being proposed to bring protections for conduct of pending investigations and legal proceedings in the best interests of Zee’s Directors and shareholders.
However, these discussions with the Sony Group did not achieve success and they decided to terminate the agreement instead, said Zee Entertainment.
