Zee Entertainment Enterprises Ltd share price surged by 15% on August 27, reaching an intraday high of Rs 154.9 before settling at Rs 147.7, a 10% rise from the previous close. This jump followed Zee’s announcement of a settlement agreement with Sony Pictures Networks India (SPNI) concerning their terminated merger deal.
The agreement resolves all ongoing disputes between Zee and Sony. Both companies have agreed to withdraw their claims against each other in arbitration at the Singapore International Arbitration Centre (SIAC) and other legal forums, including the National Company Law Tribunal (NCLT).
Earlier this year, Sony had ended the $10 billion merger deal with Zee, citing breaches of the merger terms. Sony had demanded a $90 million termination fee. Zee had also sought the same amount from Sony and its affiliate, Bangla Entertainment Pvt. Ltd. (BEPL), for ending the deal.
The companies’ joint statement announced that the settlement involved no further financial obligations between them. They will independently pursue future growth opportunities without any remaining disputes.
The merger, which was initially approved by Zee’s board in September 2021, fell through mainly due to disagreements over the leadership of the merged entity and legal complications, including an insolvency petition by IndusInd Bank against Zee.
