The illustration shows the Sony and Zee logos through the broken glass. | Credit: Reuters
India’s Zee Entertainment Enterprises and Sony’s Indian unit have agreed to drop all claims against each other related to their failed $10 billion merger, Zee announced on Tuesday.
Reuters reported that the two companies called off the merger in January after Gee failed to meet some of the acquisition’s financial terms.
Zee had applied to the Indian Company Court to enforce the deal but later withdrew it to “vigorously pursue” all claims against Sony in arbitration proceedings at the Singapore International Arbitration Centre (SIAC).
In a statement, Gee said the companies would withdraw all claims filed with SIAC and the National Company Law Tribunal of India.
The company said that as part of the non-cash settlement, the parties have no ongoing obligations or liabilities to each other.
Gee’s shares rose 13% on Tuesday but have fallen about 35% since the merger was unwound in January.
“This is a much-needed break for Zee,” said Elara analyst Karan Taurani.
Shriram Subramanian, founder of InGovern Research Services, an Indian proxy advisory firm, said the burden of litigation surrounding the company has now been lifted.
Subramanian said the settlement has left Zee’s management free to pursue its growth objectives.
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