Singapore arbitrator allows Zee Entertainment to approach NCLT to enforce Sony merger deal. india business news
New Delhi: In recent events, a Singapore Mediator has reportedly agreed to give zee entertainment Ask the National Company Law Tribunal (NCLT) to implement $10 billion Fusion with SonyThe Indian unit of which was liquidated by the Japanese firm.
According to Reuters, the emergency arbitrator rejected Sony’s application for emergency interim relief, saying it had no jurisdiction or authority to stop Zee from approaching the tribunal.
Earlier, Zee Entertainment had asked NCLT-Mumbai to order Sony to close the $10 billion merger, which the Japanese giant had called off after over two years of talks.
Punit Goenka-led Zee Entertainment also contested Sony’s claims that it breached its obligations in the merger agreement before the Singapore International Arbitration Centre. Sony had moved the Singapore tribunal seeking $90 million as termination fee for Zee’s failure to meet the merger terms.
Zee founder Subhash Chandra accused the market regulator of trying to scuttle the merger. In a letter sent to Finance Minister Nirmala Sitharaman six days before Sony canceled the merger, Chandra wrote: “While Zee and People are cooperating with SEBI in the investigation related to alleged fund diversion by the promoters, a fresh notice has been issued. The timing of the regulator’s release to former directors, coinciding with the merger deadline, raises concerns.’
Chandra also said that there is no new point in the notice. “I am not suggesting that if SEBI has any suspicion it should not investigate… Issuing a notice at this stage appears to be an exercise in sensationalizing the matter.” Chandra further said: “If the mentioned parties continue to influence the investigation, especially by SEBI, it will cause huge financial loss to the minority shareholders of the company.”
According to Reuters, the emergency arbitrator rejected Sony’s application for emergency interim relief, saying it had no jurisdiction or authority to stop Zee from approaching the tribunal.
Earlier, Zee Entertainment had asked NCLT-Mumbai to order Sony to close the $10 billion merger, which the Japanese giant had called off after over two years of talks.
Punit Goenka-led Zee Entertainment also contested Sony’s claims that it breached its obligations in the merger agreement before the Singapore International Arbitration Centre. Sony had moved the Singapore tribunal seeking $90 million as termination fee for Zee’s failure to meet the merger terms.
Zee founder Subhash Chandra accused the market regulator of trying to scuttle the merger. In a letter sent to Finance Minister Nirmala Sitharaman six days before Sony canceled the merger, Chandra wrote: “While Zee and People are cooperating with SEBI in the investigation related to alleged fund diversion by the promoters, a fresh notice has been issued. The timing of the regulator’s release to former directors, coinciding with the merger deadline, raises concerns.’
Chandra also said that there is no new point in the notice. “I am not suggesting that if SEBI has any suspicion it should not investigate… Issuing a notice at this stage appears to be an exercise in sensationalizing the matter.” Chandra further said: “If the mentioned parties continue to influence the investigation, especially by SEBI, it will cause huge financial loss to the minority shareholders of the company.”
