Zee Entertainment shares surged 8.9 percent on January 30 morning on reports that there will be an emergency arbitration hearing of the now junked Zee-Sony merger a day later in Singapore.
At 10.45 am, Zee was quoting at Rs 173.2 on the National Stock Exchange, up 7.08 percent from the previous close.
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Japanese firm Sony scrapped a $10-billion merger of its Indian arm with Zee Entertainment in part because Zee failed to meet some financial terms of the deal and come up with a plan to address them, news agency Reuters said. Reuters said it reviewed the termination notice.
On January 24, Zee moved the National Company Law Tribunal (NCLT) and Singapore International Arbitration Centre (SIAC) against Sony Pictures. SIAC would have an emergency hearing on January 31, CNBC-TV18 said.
The company has also approached the Mumbai bench of the NCLT, “seeking directions to implement the merger scheme”. The proposed merger, which would have created a $10-billion media entity, was called off by Sony on January 22.
Also Read | Zee-Sony merger called off: A timeline of how the $10 billion deal took off and derailed
As reported by Moneycontrol, a section of ZEEL's public shareholders have written to the company seeking details of the chain of events that led to the termination of the merger agreement with Sony Pictures Network.
Since January 18, when reports suggested the merger would be called off, Zee shares have tanked more than 30 percent. Over the past month, the stock tanked 40 percent.
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