ZEE Entertainment Enterprises Ltd. (ZEE), Culver Max Entertainment Pvt. Ltd. (CMEPL) operating as Sony Pictures Networks India (SPNI), and Bangla Entertainment Pvt. Ltd. (BEPL), announced Tuesday that the companies have reached a comprehensive non-cash settlement to resolve all disputes related to their failed “merger co-operation agreement and composite scheme of arrangement”.
As part of the settlement, the companies have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other fora.
The companies will also withdraw the respective composite schemes of arrangement from the NCLT and inform the relevant regulatory authorities. Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other.
Per a joint statement, “The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media & entertainment landscape, signifying the definitive conclusion of all disputes.”
Earlier, in January this year, SPNI terminated a proposed $10 billion merger deal with ZEE, calling off a December 2021 agreement. Sony also sought a $90 million (Rs 750 crore) termination fee on account of alleged breaches by ZEE of the terms of the merger agreement.
ZEE too had sought termination fee of $90m from SPNI and its entity BEPL on May 23 for pulling the plug on the merger.
The mega-merger between Zee and Sony was called off on January 22 this year and one of the main reasons cited behind the $10bn deal being derailed was the lack of consensus over who would head the merged entity. While ZEE MD and CEO Punit Goenka was earlier the agreed candidate to helm the merged company, Sony reportedly sought a reconsideration after Goenka came under a SEBI probe.
