Zee Entertainment moves NCLT to implement Sony merger deal

Zee Sony Merger: Zee Entertainment on Wednesday moved the National Company Law Tribunal (NCLT) to get Sony to abide by the $10 billion merger deal, while the Japanese media giant vowed it will thrive in India despite the aborted merger.

In the days leading up to the Sony Group terminating the merger, Zee Group Founder, Subash Chandra, had written in a letter dated January 16 to the Finance Minister Nirmala Sitharaman, blaming SEBI for trying to break the deal, as per media reports.

In the middle of negotiations, the market regular was sending notices pertaining to a case of alleged fund diversion by Zee's promoters.

Earlier, the global media player, Sony Pictures, had resisted the demand by media baron Chandra and his son Punit Goenka, who was investigated by SEBI over fraud allegations, to stay on after the merger.

In a regulatory filing, Zee had denied Sony’s claims of the latter was breaching its obligations under the deal, while mentioning it has started legal action to contest the claims in arbitration proceedings before the Singapore International Arbitration Centre.

The country's media giant has also approached the Mumbai-bench of the National Company Law Tribunal to get Sony to honour the deal that was preliminary agreed two years ago, as per media reports.

Separately, Sony’s India unit head shot off an official letter to its employees, assuring them the firm will thrive despite its aborted merger with Zee Entertainment Enterprises Ltd.

$90 Million Claim

Chandra-backed Zee has also initiated appropriate legal actions to contest the claims of $90 million (Rs 748.5 crore) filed by Sony Group before the Singapore International Arbitration Centre (SIAC), as per a regulatory filing.

It has been asserted that Sony Group firm Culver Max and BEPL (Bangla Entertainment Pvt Ltd), which were to be merged with ZEEL, are in “default of their obligations to give effect to” and implement the scheme of merger that was sanctioned by the NCLT, it said.

ZEEL said, “The company approached the NCLT, Mumbai-bench, inter alia seeking directions to implement the merger scheme.”