Sony cancels the mega-merger deal with ZEE owing to non-compliance and delays, leading to Zee's plan for legal action post deal termination
After a prolonged delay, Sony has officially called off its mega-merger with ZEE, citing non-compliance and extended negotiations. The two-year-long tussle for the merger persists even after the termination of the deal, as Zee now threatens to file a legal case against Sony.
This development follows Sony Group's decision to terminate a $10 billion merger involving their India operations, as per a report by Reuters.
Before the culmination of the deal on December 21, 2023, which included obtaining regulatory and other approvals, there was a grace period of one month allotted to finalize the transaction.
"The Company categorically refutes all claims and assertions made by Culver Max and BEPL regarding alleged breaches of the MCA by ZEEL, including their claims for the termination fee, and reserves all its rights in this matter. The Company is evaluating all available options and basis the guidance received from the Board and will take all necessary steps to safeguard the long-term interests of its stakeholders, including by taking appropriate legal action and contesting Culver Max and BEPL’s claims in the arbitration proceedings," Zee stated in an exchange filing.
The company also added that Punit Goenka, MD & CEO, ZEEL, had willingly agreed to resign in the context of the merger. Discussions included proposals such as the appointment of a director to the merged company's Board, safeguards for ongoing investigations and legal proceedings in the best interests of ZEEL’s directors and shareholders, and subsequent adjustments to the scheme to accommodate these considerations.