Zee Entertainment Enterprises Ltd (ZEEL) on February 13 explained where it stands regarding the $10-billion merger that was called off by Sony Group's Indian arm and the likely impact on the media firm.
Sony had last month terminated the merger agreement with ZEEL to merge its two Indian entities - Culver Max Entertainment (earlier known as Sony Pictures Network India) and BEPL. Sony Group Corporation (SGC) had said ZEEL did not satisfy the merger conditions and initiated arbitration proceedings before SIAC claiming $90 million (around Rs 748.5 cr) as a termination fee.
Earlier this month, ZEEL said the Singapore Arbitration Centre has denied Sony Group's plea seeking a restrain against the Indian media company's move to the NCLT for enforcing the merger. An Emergency Arbitrator of Singapore International Arbitration Centre denied the interim relief sought by Culver Max and BEPL (Bangla Entertainment Pvt Ltd) to restrain ZEEL, observing it lacks jurisdiction to pass such an order, ZEEL had stated in a filing to stock exchanges. The matter is scheduled for hearing before NCLT on March 12, 2024.
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On Tuesday, while announcing its Q3 results, ZEEL said in a stock exchange filing, "The management believes the claims against the company, including towards termination fee is not tenable, and does not expect any material impact on the company."
On February 13, ZEEL announced 141% rise in its consolidated net profit at Rs 58.5 for the quarter ending December 31, 2023. Its revenue fell 3% to Rs 2,046 crore in Q3FY24 as against Rs 2,109 crore in Q3FY23.
The Mumbai bench of NCLT on August 10, 2023, approved the scheme of merger of ZEEL with Sony group entities Culver Max Entertainment and BEPL, which could have created a $10-billion media entity.
If the Sony-Zee merger was completed, the combined entity would have owned over 70 TV channels, two video streaming services -- ZEE5 and Sony LIV -- and two film studios -- Zee Studios and Sony Pictures Films India-- making it the largest entertainment network in the country.
(With inputs from PTI)
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