Zee demands $90 million in termination fee from Sony’s Culver Max and BEPL for failed merger deal. ZEE asked for ₹750 crore termination fee from Sony: Sony-G merger deal was canceled on January 22, merger was approved in August 2023

Zee Entertainment has asked Sony Group’s Culver Max Entertainment and Bangla Entertainment Private Limited (BEPL) to pay $90 million as part of the termination fee. Zee Entertainment has given this information in its stock exchange filing on Thursday (May 23).

“Sony Group’s India media unit Culver Max and BEPL have failed to comply with their obligations under the Merger Corporation Agreement (MCA),” Zee Entertainment said in the filing. Therefore, the Company has terminated the MCA and asked Culver Max and BEPL to pay, as per the MCA, a termination fee i.e. an aggregate amount equal to $90 million (Rs 750 crore).’

Sony had announced the end of the deal on January 22.
More than two years after announcing its proposed merger, Sony announced the termination of the deal on January 22. At the same time, Sony had also accused ZEEL of not fulfilling the closing conditions even after extending the closing period by one month. However, ZEEL says that it is ready to meet most of the conditions.

The merger was approved by NCLT on August 10, 2023.
The Mumbai bench of NCLT had on August 10, 2023, approved the scheme of merger of ZEEL with Sony Group entities Culver Max Entertainment and BEPL. After completion of this deal, a media unit worth $10 billion (Rs 83,277 crore) could be formed.

Zee had spent Rs 432 crore on the merger deal.
According to regulatory filings, Zee Entertainment had incurred Rs 432 crore in merger-related costs during 2023-24 and 2022-23 on its failed merger deal with Sony Group Corporation’s India media unit Culver Max Entertainment.

Sony Group Corporation had said that ZEEL failed to meet the terms of the merger and also initiated arbitration proceedings before the Singapore International Arbitration Center (SIAC). In which $90 million was claimed as termination fee.

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