Shares of Zee Entertainment Enterprises Ltd. rallied up to 15% on Tuesday after the company informed that it has entered into an agreement to settle all disputes with Sony regarding the termination of the merger. Both Sony and Zee will withdraw all claims against each other.
Both the companies will withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities, terminating the $10 billion deal.
Zee said that it will settle all disputes in relation to, arising out of or in connection with transaction with CMEPL and BEPL. The company said that CMEPL and BEPL have agreed to relinquish all their rights to bring any claim.
The agreement to withdraw all applications and claims before Singapore International Arbitration Centre, and both have agreed to mutually terminate all transaction documents.
“As part of the settlement, the companies (Zee and Sony Pictures India) have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums,” Zee said in a filing.
The settlement also includes withdrawing all claims for the $90 million termination fee, damages, litigation and other costs incurred, and all claims for costs of disposition hive-off, spin-off, winding-up, liquidation, closure of business and or any other assets.
Zee Entertainment’s proposed $10 billion merger with Sony Pictures was called off in January this year after being in the works for over two years.
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