Zee Sony merger: On January 22, Zee Entertainment Enterprises Limited (ZEEL) announced its intention to take legal action against Sony Pictures Networks India (SPNI). This comes in response to the Japanese media company closing the $10 billion merger involving its Indian operations with ZEEL.
In a regulatory filing, Zee said, “The company is evaluating all available options and will take all necessary steps to protect the long-term interests of its stakeholders based on the guidance received from the Board, including taking appropriate legal action and countering Culver.” “Involves doing.” “Claims of Max and BEPL in the arbitration proceedings.”
Also read: Sony cancels $10 billion merger deal with Zee, sends notice: Report
Last year, on December 17, Zee had requested Culver Max and Bangla Entertainment Pvt Ltd (BEPL) to extend the deadline as per the terms mentioned in the 2021 agreement.
On December 19, SPNI had said that it had not yet agreed to ZEEL’s deadline extension request. However, just a day later she agreed to discuss the matter.
How did things unfold?
Culver Max Entertainment, formerly known as Sony Pictures Networks India (SPNI), has terminated the merger agreement with Zee Entertainment, which otherwise would have created a US$10 billion media enterprise in the country.
Sony Pictures Networks India (SPNI) serves as the consumer-facing identity for Culver Max Entertainment Pvt. Ltd., an indirect wholly owned subsidiary of Sony Group Corporation based in Japan.
“SPNI, a wholly owned subsidiary of Sony Group Corporation, has today issued a notice terminating the definitive agreements entered into by SPNI and Zee Entertainment Enterprises Limited (ZEEL) in connection with and relating to the merger of ZEEL with SPNI, the terms of which The announcement was made in December. 22, 2021,” a statement from Sony Group Corporation said.
As per the deal, the merger was to be completed before December 21, 2023, with a grace period of one month to complete the transaction, including regulatory and other approvals.
It states that if the merger does not close 24 months after the signing date, the parties will need to discuss an extension of the closing date necessary to make the merger effective for a reasonable period of time.
Such discussions were required to be held for a period ending 30 days after the last date.
It added, “The definitive agreements also provide that if the parties are unable to agree on such extension by the end of the discussion period, either party may terminate the definitive agreements by giving written notice.”
However, the merger was not completed by the deadline because, among other things, the closing conditions of the merger were not fulfilled by then, it said.
Sony sent a termination notice to Subhash Chandra family-promoted media and entertainment firm ZEEL after the one-month grace period ended.
The proposed US$10 billion merger had already received regulatory approvals from fair trade regulator CCI, NSE and BSE, the company’s shareholders and creditors.
In August last year, the Mumbai bench of the National Company Law Tribunal (NCLT) had also given the green signal to the merger.
(With PTI inputs)
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