Disappointed with Singapore tribunal's decision: Sony on merger dispute with Zee

Sony versus Zee: Japanese multinational conglomerate Sony Group has expressed disappointment with the decision of the Singapore International Arbitration Centre's (SIAC) emergency arbitrator regarding the Sony-Zee merger case. On Monday, Sony officially conveyed its dissatisfaction with the rejection of its plea to restrain Zee Entertainment Enterprise Ltd (ZEEL) from approaching the National Company Law Tribunal (NCLT).

The emergency arbitrator at SIAC dismissed the plea, citing a lack of jurisdiction, leading Sony to assert its commitment to vigorously arbitrate the matter in the international tribunal.

In a statement released on Monday, Sony Pictures Entertainment clarified that the decision by SIAC was procedural, focussing solely on whether Zee Entertainment could pursue its application with the NCLT. The company emphasised its confidence in the merits of the case and its pursuit of terminating the merger agreement and seeking damages from ZEEL.

"We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India," Sony stated.

The background of the dispute lies in Sony's termination of the agreement with ZEEL last month to merge its two Indian entities, Culver Max Entertainment (formerly Sony Pictures Network India) and BEPL. Sony Group Corporation claimed ZEEL failed to meet merger conditions and initiated arbitration proceedings before SIAC, seeking a termination fee of $90 million.

In response, ZEEL filed a petition before the NCLT, urging Sony Group to implement the merger. The legal battle also involves ZEEL contesting the $90 million claims filed by Sony Group before SIAC.

The Mumbai bench of NCLT had previously approved the merger scheme on August 10, 2023, envisioning the creation of a $10 billion media entity if completed. The combined entity would have owned over 70 TV channels, two video streaming services (ZEE5 and Sony LIV), and two film studios (Zee Studios and Sony Pictures Films India), establishing itself as the largest entertainment network in India.

(With Reuters inputs.)