Zee Entertainment Enterprises Ltd. has sought a termination fee of $90 million from Sony Pictures Networks India (now known as Culver Max) after the latter backed out of a $10-billion merger deal in January this year.
In a regulatory filing, Zee said, “Sony Pictures Networks India and Bangla Entertainment, a unit of Sony Pictures, have failed to comply with their obligations under the merger cooperation agreement (MCA). Therefore, it has terminated the MCA by issuing a letter dated May 23, and has called upon Culver Max and Bangla Entertainment to pay the termination fee i.e. the aggregate amount equal to $90 million, in accordance with the MCA.”
Sony had moved the Singapore Arbitration Court seeking $90 million as break-up fee.
Business analysts feel, Zee had spent over Rs. 400 crore on merger-related expenses. They also feel, the cancellation of the merger deal, which had been in the works for over two years, is a negative development for Zee.
