Mumbai, May 25: Zee Entertainment Enterprises has sought a termination fee of $90 million (around Rs 748.7 crore) from the Sony Group for calling off the $10 billion merger deal in January this year.It has sought termination fees from two Sony Group entities —Sony Pictures Networks India (SPNI), now known as Culver Max Entertainment, and Bangla Entertainment (BEPL)—according to a regulatory filing from Zee Entertainment Enterprises Ltd (ZEEL) on Thursday.
ZEEL has, on account of Culver Max’s and BEPL’s breaches under the Merger Cooperation agreement (MCA), terminated the MCA by issuing a letter dated May 23, 2024.
The company has sought a termination fee from Culver Max and BEPL under the provisions of the MCA, it said.
“Culver Max and BEPL have failed to comply with their obligations under the MCA. Therefore, the company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee i.e. the aggregate amount equal to USD 90 million in accordance with the MCA,” it said.
Earlier on January 22, 2024, Sony Group Corporation (SGC) had said ZEEL did not satisfy the merger conditions and initiated arbitration proceedings before the Singapore International Arbitration Centre (SIAC) claiming $90 million as termination fee.
This was contested by ZEEL before the SIAC, which denied any interim relief to the Sony group against the Indian broadcaster.
ZEEL had moved the National Company Law Tribunal seeking implementation of the proposed merger and later withdrew its plea.