Sony Pictures Networks India on Thursday withdrew its NCLT application regarding the merger of its business with Zee Entertainment Enterprises Ltd (ZEEL), according to a Moneycontrol report citing sources aware of the development.
In January, the Sony Group Corp called off two-year-long merger talks with ZEEL following a stalemate over who would lead the merged entity. This merger could have otherwise created a $10-billion media enterprise in the country.
Sony entities Culver Max and Bangla Entertainment had also terminated their merger agreement with Zee on January 22 citing unfulfilled conditions, and sought a $90 million termination fee from Zee.
After the call-off by Sony, ZEEL on January 24, said it had moved the NCLT and the Singapore International Arbitration Centre (SIAC) against Sony’s termination of the merger deal.
Following this, it also filed a petition with NCLT. On January 31, the National Company Law Tribunal (NCLT) accepted a petition by a Zee Entertainment shareholder seeking the merger of its Indian entity with Sony.
Sony Group companies requested SIAC to prevent ZEEL from seeking legal remedies from the NCLT or other India or international courts until the arbitration proceedings are completed. However, the SIAC denied interim relief to the Sony group and said it had no jurisdiction to prevent Zee from moving the NCLT.
Last week, ZEEL said that its board had approved the constitution of an independent advisory committee that will enable it to review and take cognisance of the widespread circulation of misinformation, market rumours, and speculation that has led to the formation of negative public opinion about the company and consequent erosion of investor wealth.
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