MUMBAI: Zee Entertainment Enterprises has decided to withdraw its request asking an Indian court to order Sony to honor its obligations to enter into a $10 billion merger deal that the Japanese company’s local arm had terminated.
It had filed the application for implementation of the merger with the NCLT (Mumbai bench) on January 24 after Sony India canceled the deal with Zee for alleged violations of the terms of the agreement.
On Tuesday, Zee said it had decided to withdraw the application to implement the merger after consultation with legal experts. However, it added that it would pursue its claim, including the demand for a termination fee of $90 million against Sony India in the ongoing arbitration proceedings in Singapore.
The failure of the merger, more than two years in the making, was worrying for Zee amid consolidation in the media and entertainment sector. It had spent a total of around Rs 367 crore on merger-related expenses.
After the deal was canceled, the company took steps to streamline its structure and streamline its workforce to reduce expenses and improve profits. He also announced that MD Punit Goenka would take a 20% cut in his remuneration as part of his cost-cutting measures.
It had filed the application for implementation of the merger with the NCLT (Mumbai bench) on January 24 after Sony India canceled the deal with Zee for alleged violations of the terms of the agreement.
Develop
On Tuesday, Zee said it had decided to withdraw the application to implement the merger after consultation with legal experts. However, it added that it would pursue its claim, including the demand for a termination fee of $90 million against Sony India in the ongoing arbitration proceedings in Singapore.
The failure of the merger, more than two years in the making, was worrying for Zee amid consolidation in the media and entertainment sector. It had spent a total of around Rs 367 crore on merger-related expenses.
After the deal was canceled, the company took steps to streamline its structure and streamline its workforce to reduce expenses and improve profits. He also announced that MD Punit Goenka would take a 20% cut in his remuneration as part of his cost-cutting measures.
