ZEE shares collapse after Sony calls off merger alleging violations of MCA

Shares of ZEE Entertainment Enterprises hit its lower band of Rs 208.30 on the National Stock Exchange as soon as the market opened. The reason behind the decline in share value can be attributed to the call off of the merger by Sony Pictures Networks.

Culver Max Entertainment, formerly Sony Pictures Network, is the Indian subsidiary of Sony Pictures Television.

On 22 January, Sony aborted the $10 billion merger deal with ZEE and asked $ 90 million termination fee alleging that ZEE violated the rules of the Ministry of Corporate Affairs. The merger deal dates back to December 21, 2021.
“The Company categorically refutes all claims and assertions made by Culver Max and BEPL regarding alleged breaches of the MCA by ZEEL, including their claims for the termination fee, and reserves all its rights in this matter. The Company is evaluating all available options and basis the guidance received from the Board and will take all necessary steps to safeguard the long-term interests of its stakeholders, including by taking appropriate legal action and contesting Culver Max and BEPL’s claims in the arbitration proceedings,” said ZEE in an exchange filing.

The shares of ZEE Entertainment Enterprises have fallen 22.15% in the past one month. It has fallen nearly 7% in the last year.