Zee seeks Rs 750 crore from Sony; terminates MCA

New Delhi: Zee Entertainment Enterprises Ltd (Zeel) sought a termination fee of Rs 750 crore ($90mn) from Sony Pictures Networks India for calling off the $10-bn merger deal earlier this year. 

“Culver Max and BEPL have failed to comply with their obligations under the Merger Cooperation Agreement (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 90,000,000, in accordance with the MCA,” Zeel said in a regulatory filing.

More than two years after announcing their proposed merger, Sony, on January 22, terminated the deal saying Zeel did not meet closing conditions even after extending their closing period by a month.

Zeel has been maintaining that it was willing to meet most of the conditions.

In its earlier regulatory filings, Zee said it incurred Rs 432 crore in merger-related costs during 2023-24 and 2022-23 on its failed merger deal with Sony.

Sony had initiated arbitration proceedings before the Singapore International Arbitration Centre (SIAC) claiming $90 million (around Rs 748.5 crore) as a termination fee.

ZEEL had also initiated legal actions to contest the claims of $90 million filed by Sony Group before SIAC.