ZEEL has, on account of Culver Max’s and BEPL’s breaches beneath the Merger Cooperation settlement, terminated the MCA by issuing a letter dated May 23, 2024.
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Zee Entertainment Enterprises has sought a termination fee of $90 million (round ₹748.7 crore) from the Sony Group for calling off the $10 billion merger deal in January this yr.
It has sought termination charges from two Sony Group entities — Sony Pictures Networks India (SPNI), now referred to as Culver Max Entertainment, and Bangla Entertainment (BEPL), in keeping with a regulatory submitting from Zee Entertainment Enterprises Limited (ZEEL) on May 24.
ZEEL has, on account of Culver Max’s and BEPL’s breaches beneath the Merger Cooperation settlement (MCA), terminated the MCA by issuing a letter dated May 23, 2024. “The company has sought a termination fee from Culver Max and BEPL under the provisions of the MCA,” it mentioned.
“Culver Max and BEPL have failed to comply with their obligations under the MCA. Therefore, the company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee i.e. the aggregate amount equal to $90 million in accordance with the MCA,” it mentioned.
Earlier on January 22, 2024, Sony Group Corporation (SGC) had mentioned that ZEEL didn’t fulfill the merger situations and initiated arbitration proceedings earlier than the Singapore International Arbitration Centre (SIAC) claiming $90 million as termination fee.
This was contested by ZEEL earlier than the SIAC, which denied any interim aid to the Sony group towards the Indian broadcaster. ZEEL had moved the National Company Law Tribunal looking for implementation of the proposed merger and later withdrew its plea.
“We hereby wish to inform you that the company has, on account of Culver Max’s and BEPL’s breaches under the MCA, terminated the MCA by issuing a letter dated May 23, 2024, and sought a termination fee from Culver Max and BEPL in accordance with the provisions of the MCA,” the submitting mentioned. ZEEL and SPNI had entered into an settlement to merge on December 22, 2021.
On August 10, 2023 the Mumbai Bench of NCLT authorized the scheme of merger of ZEEL with Sony group entities Culver Max Entertainment and BEPL, which might have created a $10 billion media entity.
However, two years after that Sony Corporation introduced the termination of the settlement on January 22, 2024.
