MUMBAI: Punit Goenka-helmed Zee Entertainment Enterprises has sought a termination fee of $90 million from Sony Pictures Networks India after the latter pulled the plug on a $10-billion merger deal.
In a regulatory filing, Zee said: “Sony Pictures Networks India (now known as Culver Max) 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.”
On Jan 22, Sony called off the merger deal citing unmet closing conditions and moved the Singapore arbitration court seeking $90 million in break-up fee. The collapse of the merger, which was in the works for more than two years, was described as a negative development for Zee by analysts. Zee had spent over Rs 400 crore on merger-related expenses. After the deal’s cancellation, the company initiated steps to streamline its structure and rationalise its workforce to cut expenses and improve profits.