MUMBAI: Zee Entertainment Enterprises has decided to withdraw its application asking an Indian tribunal to order Sony to honour its obligations to close a $10-billion merger deal that the local arm of the Japanese firm had terminated.
It had filed the merger implementation application with the NCLT (Mumbai bench) on Jan 24 after Sony India called off the deal with Zee for alleged breaches in the terms of the agreement.
On Tuesday, Zee said it has decided to withdraw the merger implementation application after a consultation with legal experts. However, it added that it will continue to pursue its claim including the demand for a $90-million termination fee against Sony India in the ongoing arbitration proceedings in Singapore.
The collapse of the merger, which was in the works for more than two years, was concerning for Zee amid consolidation moves in the media and entertainment industry. It had spent a total of about Rs 367 crore on merger-related expenses.
After the deal’s cancellation, it initiated steps to streamline its structure and rationalise its workforce to reduce expenses and improve profits. It also announced that MD Punit Goenka will take a 20% cut in his remuneration as part of its cost-cutting moves.
It had filed the merger implementation application with the NCLT (Mumbai bench) on Jan 24 after Sony India called off the deal with Zee for alleged breaches in the terms of the agreement.
On Tuesday, Zee said it has decided to withdraw the merger implementation application after a consultation with legal experts. However, it added that it will continue to pursue its claim including the demand for a $90-million termination fee against Sony India in the ongoing arbitration proceedings in Singapore.
The collapse of the merger, which was in the works for more than two years, was concerning for Zee amid consolidation moves in the media and entertainment industry. It had spent a total of about Rs 367 crore on merger-related expenses.
After the deal’s cancellation, it initiated steps to streamline its structure and rationalise its workforce to reduce expenses and improve profits. It also announced that MD Punit Goenka will take a 20% cut in his remuneration as part of its cost-cutting moves.
