Zee Entertainment Enterprises (ZEEL) has secured approval from the National Company Law Tribunal (NCLT) to withdraw its application and related claims in the arbitration proceedings concerning its merger with Sony Pictures Networks India (SPNI).
The brings an end to the nearly three-year legal battle surrounding the merger.
In a regulatory filing, ZEEL said, “Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), and as an update to our communication dated August 27, 2024 in respect of the Scheme, we enclose herewith an order passed by NCLT Mumbai Bench inter alia allowing the withdrawal of the Scheme and recall the sanctioned order dated August 10, 2023 passed by the NCLT in respect of the Scheme.”
In August 2024, Zee and Sony announced that they had reached a comprehensive non-cash settlement, successfully and amicably resolving all disputes concerning the Merger Co-operation Agreement and the Composite Scheme of Arrangement.
The Zee-Sony merger discussions began in September 2021, with Zee’s board approving the agreement in December of the same year. While the merger received regulatory approvals and overcame various legal challenges, it faced opposition from creditors, leading to several legal disputes.
In January, Sony terminated the agreement, prompting Zee to take legal action. However, both companies ultimately resolved the matter through a non-cash settlement in August.
