Zee renews negotiations with Sony for merger: Reports

Zee Entertainment Enterprises (ZEEL) has renewed negotiations with Sony Group Corp in a final effort to salvage the $10-billion mega merger, according to a news report. 

According to the report, delegates from both parties met in Mumbai over the past two weeks in an effort to rescue the deal, despite significant lingering disparities that threaten to thwart the revival efforts.

The report further suggests that Zee will communicate its decision to Sony within the next 24-48 hours regarding its willingness to agree to the terms and conditions.

While the reasons behind Sony's apparent change of heart remain unclear, the merger was formally terminated on January 22, 2024.

Sony Group Corporation had said ZEEL failed to satisfy merger conditions and also initiated arbitration proceedings before SIAC claiming $90 million as a termination fee, which was eventually rejected. 

On the other hand, ZEEL filed a petition before the NCLT, seeking a direction for Sony group to implement the merger. ZEEL also initiated legal actions to contest the claims of $90 million filed by Sony Group before SIAC.

During ZEE's recent analyst call, CEO Punit Goenka indicated that the termination had undergone thorough review by the board. Subsequent actions were then taken in consultation with legal experts, all with the paramount consideration of benefiting both shareholders and stakeholders.

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