The two-year courtship between Sony Group Corp.'s Indian unit and Zee Entertainment Enterprises Ltd ended in acrimony on Monday, setting the stage for a legal battle and sparking uncertainty about the fate of both entities.
Sony ended the merger agreement and demanded $90 million in termination fees. Zee rejected the demand and said it plans to take legal action to protect stakeholder interests. The move came after a failed 30-day attempt to stitch together an agreement after the original deal deadline had passed. Sony has already moved an arbitration court in Singapore, a person aware of the matter said.
"After more than two years of negotiations, we are extremely disappointed that the closing conditions of the merger were not satisfied by the end date," Sony said in a statement, seeking termination fees. The board of Zee, which met soon after, rebuffed the demand, denied "alleged breaches", and said it is evaluating all options in a statement released to the media.
When contacted, both Sony and Zee declined to comment further on the matter.
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