Shocking Turn: NCLT Halts Zee-Sony Merger with Order Recall, Approves Scheme Withdrawal | Breaking Company News
NCLT Withdraws Approval of Zee Entertainment and Sony Pictures Networks India Merger
On September 14, 2024, the National Company Law Tribunal (NCLT) revoked its prior approval of the merger between Zee Entertainment and Sony Pictures Networks India (SPNI). The Mumbai bench of the NCLT had initially sanctioned the merger on August 10, 2023. However, this decision was retracted last week following a mutual agreement between the parties to withdraw the merger scheme.
The withdrawal follows a settlement between Zee and SPNI, which included resolutions from their respective boards to terminate the amalgamation plan. A joint statement revealed that both companies agreed to dismiss all claims and ongoing arbitration at the Singapore International Arbitration Centre (SIAC) as well as other legal proceedings.
This decision concludes a six-month-long dispute over the failed $10 billion merger, during which both Zee and Sony sought a termination fee of $90 million (approximately Rs 748.7 crore) from each other for non-compliance with the Merger Cooperation Agreement (MCA) signed in December 2021. The issue was compounded in January when Sony withdrew from the proposed $10.5 billion merger, citing Zee’s failure to meet certain closing conditions.
The retraction of the merger approval by the NCLT was formally disclosed by Zee to the stock exchanges on Thursday.
First Published: September 14, 2024 | 6:57 PM IST
Original Story https://www.business-standard.com/companies/news/nclt-recalls-order-on-zee-sony-merger-allows-withdrawal-of-scheme-124091400713_1.html
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