Zee Entertainment (ZEEL) is currently the top loser on the BSE; Opening 10% lower at Rs.208.75, freezing at its 10% LC.
A few weeks ago itself, corporate grapevine was rife with rumours that the deal with Sony will not go through and this is precisely what happened yesterday.
The merger did not close by the end date as, among other things, the closing conditions were not satisfied by then, according to a statement released by Sony Group.
In a statement, ZEEL said that communications received from Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India) (Culver Max) and Bangla Entertainment Private Limited (BEPL), “purporting to terminate the Merger Co-operation Agreement (MCA) dated 21st December 2021 and seeking a termination fee of $90 million on account of alleged breaches by ZEEL of the terms of MCA, invoking arbitration and seeking interim reliefs against ZEEL.
In response, ZEEL has denied the allegations and has refused to pay any termination fee. Amongst many other things, the deal was called off as disagreement rose over their opposing stance over the appointment of Punit Goenka as the CEO of the combined entity.
Earlier Goenka had agreed, verbally, to the deal without him on the drivers seat but with temporary relief coming from the Securities Appellate Tribunal on the SEBI investigation, Goenka wanted to keep the original terms of the agreement.