जी-सोनी का मर्जर टर्मिनेशन विवाद सुलझा: दोनों कंपनियों के बीच एग्रीमेंट हुआ, इस खबर से जी एंटरटेनमेंट का शेयर 15% चढ़ा

Shares of Zee Entertainment Enterprises Limited rose 15% during market trading today (27 August). However, later the company’s stock closed at Rs 150 with a gain of 11.61%.

This rise in the shares of Zee Entertainment has been seen due to the resolution of the merger termination dispute with Sony. The company’s shares have risen 5% in the last 1 month and fallen 12.80% in the last 6 months.

Zee’s stock has fallen by 42.61% in one year
At the same time, Zee’s stock has fallen by 42.61% in one year. The company’s market cap is Rs 14.49 thousand crores. Zee said that it has entered into an agreement to settle all disputes with Sony Pictures Networks India regarding the termination of the merger.

Both companies withdrew all claims against each other
“In the agreement, Zee and Sony have agreed to withdraw all relevant claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre (SIAC) and all related legal proceedings initiated at the National Company Law Tribunal (NCLT) and other forums,” the media firm said in the statement.

Resolving disputes through agreement and reaching non-cash settlement
Neither party will have any outstanding or continuing obligations or liabilities to the other under the terms of the agreement, the two companies said. The merger corporations have reached a non-cash settlement resolving all disputes relating to the agreement.

According to the statement of both the companies, ‘This agreement has been reached with mutual understanding between the companies so that they can independently work on future growth opportunities with a new purpose. Also, they can focus on their media and entertainment business, which represents a decisive conclusion of all disputes.’

On May 23, ZEE had demanded ₹750 crore termination fee from Sony
Earlier on May 23, Zee Entertainment had asked Sony Group’s Culver Max Entertainment and Bangla Entertainment Private Limited (BEPL) to pay $90 million as part of the termination fees. Zee Entertainment gave this information in a stock exchange filing.

Zee Entertainment had said in the filing, “Sony Group’s India media unit Culver Max and BEPL have failed to comply with their obligations under the Merger Corporation Agreement (MCA). Therefore, the company has terminated the MCA and has asked Culver Max and BEPL to pay the termination fee, i.e., an aggregate amount equivalent to $90 million (Rs 750 crore), in accordance with the MCA.”

Sony announced the end of the deal on January 22
More than two years after announcing its proposed merger, Sony announced the termination of the deal on January 22. Sony also accused ZEEL of not fulfilling the closing conditions even after extending the closing period by a month. However, ZEEL says it is ready to fulfill most of the conditions.

The Mumbai bench of NCLT had approved the scheme of merger of ZEEL with Sony Group entities Culver Max Entertainment and BEPL on August 10, 2023. After completion of this deal, a media unit worth $ 10 billion (Rs 83,277 crore) could be formed.

Zee had spent Rs 432 crore on the merger deal
According to regulatory filings, Zee Entertainment had spent Rs 432 crore in merger-related costs during 2023-24 and 2022-23 on its failed merger deal with Sony Group Corporation’s India media unit Culver Max Entertainment.

Sony Group Corporation had said that ZEEL failed to fulfill the merger conditions and also initiated arbitration proceedings before the Singapore International Arbitration Centre (SIAC), claiming $90 million as termination fees.