Zee stock zooms 14% on settling merger termination dispute with Sony
Zee Entertainment in an exchange filing today said, both companies had agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore.
 "Zee stock zooms 14% on settling merger termination dispute with Sony")
Zee Entertainment share price today soared 14.2 per cent to Rs 154.65 per share on the BSE in the intraday trade.
The sharp surge in Zee Entertainment share price came after it said ZEE, Culver Max Entertainment Pvt. Ltd. (operating as Sony Pictures Networks India), together with its group company Bangla Entertainment, and have arrived at a comprehensive non-cash settlement.
"As part of the settlement, the companies 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. The companies will also withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities," they said in a joint statement.
"Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other. The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media & entertainment landscape, signifying the definitive conclusion of all disputes." the statement added.
At 2:20 PM, ZEE share price was ruling 9.7 per cent higher at Rs 148.5 per share as against a 110-point rise in the BSE Sensex.
Other group companies, Zee Media Corporation also surged 10.3 per cent, while Zee Learn stock which is under additional surveillance traded on a flat note.
Sony had formally called-off its $10 billion merger agreement with Zee in late February, 2024; post which Zee Entertainment sought up to $90 million as termination fee from Sony for the failed merger.
Meanwhile, for the quarter ended June 2024 Zee Entertainment had reported a solid turnaround with Rs 118.10 crore as consolidated net profit as against a net loss of Rs 53.42 crore in the quarter ended June 2023. The company's total income grew by 7.6 per cent year-on-year (YoY) to Rs 2,149.52 crore from Rs 1,941.22 crore.
The company in July had raised up to $239 million via foreign currency convertible bonds (FCCB) from Resonance Opportunities Fund, St. John’s Wood Fund, and Ebisu Global Opportunities Fund. The conversion price for the issued FCCB was equivalent to Rs 160.20 per equity share.