Zee Entertainment Enterprises and Sony Pictures Network India withdrew all legal cases against each other on Tuesday after arriving at a comprehensive non cash settlement to resolve all disputes related to the merger.
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 forums. The companies will also withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities.
These cases were initiated by both parties, after Sony terminated its $10 billion merger agreement with Zee in January 22, following the news of Punit Goenka’s troubles with SEBI. Following the terminatio Sony also sought a $90 million termination fee on account of alleged breaches by Zee Entertainment of the terms of the merger agreement. Zee filed a countersuite in the NCLT against Zee.
Zee and Sony collectively informed the exchanges, “Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other. 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.”
Zee share price jumped as much as 15 per cent on Tuesday after the media firm said it has entered into an agreement to settle all disputes with Sony regarding the termination of merger. In the afternoon trade, Zee stock jumped to an intraday high of ₹154.9 before closing at ₹150.90, up 11.49 per cent.