On Monday, 05th February 2024 Sony expressed disappointment with the Singapore International Arbitration Centre’s (SIAC) decision not to prevent Zee from pursuing a case against Sony in the National Company Law Tribunal (NCLT) in India. Sony clarified that the SIAC’s decision was procedural, solely determining whether Zee Entertainment could proceed with its application at the NCLT.
In a statement, Sony conveyed, “We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India.”
The emergency arbitrator clarified that it lacked jurisdiction to prevent Zee from approaching the NCLT for the merger’s implementation, stating that such matters fell within the statutory system and were for the NCLT to decide. Zee has filed an appeal with the NCLT, seeking enforcement of the now-terminated merger.
Zee alleges that the decision to terminate the merger was premeditated and claims it incurred costs of ₹700 crore (approximately $80 million) to meet the necessary requirements for the merger.
Conversely, Sony is pursuing a termination fee of $90 million from Zee, a demand that Zee has rejected. Zee is taking legal actions to safeguard shareholder interests amidst the ongoing dispute.
