Zee & Sony settle dispute over failed merger, withdraw claims

ZEE Entertainment Enterprises Ltd and Sony Pictures Networks India on Tuesday, 27 August said they have settled their disputes related to the failed USD 10-billion merger and have agreed to withdraw all claims against each other.

The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media and entertainment landscape, signifying the definitive conclusion of all disputes, the two companies said in a joint statement.

ZEE Entertainment Enterprises Ltd and Culver Max Entertainment Pvt. Ltd. (CMEPL) have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the merger co-operation agreement and the composite scheme of arrangement, it said.

Under the agreement, the companies have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre (SIAC), and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums, it added.

The companies will also withdraw the respective composite schemes of Arrangement from the NCLT and inform the relevant regulatory authorities.

In January this year, Sony had pulled out from the proposed USD 10-billion merger with ZEE Entertainment Enterprises Ltd citing failure to meet certain "closing conditions" by the Indian firm.

The deal collapsed after over two years of announcing it. Subsequently, the two parties went to the courts.