Sony to continue arbitration against Zee merger at SAIC

Ayushi Kar Updated - February 05, 2024 at 11:54 AM.

Zee alleges that the decision to terminate the merger was premeditated

Sony said on Monday that it was disappointed with the Singapore International Arbitration Centre’s (SIAC) decision not to prevent Zee from pursuing a case with the National Company Law Tribunal in India against Sony

In a statement shared with businessline, Sony said, “We are disappointed in the decision by the Singapore International Arbitration Centre (SIAC). This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT.”

“We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India,” Sony added further. 

The emergency arbitrator said that it had no jurisdiction or authority to prevent Zee from approaching the NCLT to implement the merger, since these matters were within the statutory system and were for the NCLT to decide.

Zee has filed an appeal with the NCLT, seeking the court to enforce the now-terminated merger between the two firms.

Zee alleges that the decision to terminate the merger was premeditated, and argues that it incurred costs of ₹700 crore or $80 million to comply with the necessary requirements in preparation for the merger.

Meanwhile, Sony is seeking a termination fee of $90 million form Zee. However, Zee has rejected this demand and is taking legal actions to protect shareholder interests.

Published on February 5, 2024 06:24

This is a Premium article available exclusively to our subscribers.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.
Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

TheHindu Businessline operates by its editorial values to provide you quality journalism.

This is your last free article.