The Singapore International Arbitration Center has rejected Sony Group’s interim relief seeking to prevent Zee Entertainment Enterprises from filing a lawsuit in India’s corporate courts over the media company’s $10 billion merger.
Last month, Sony Group and G Entertainment called off a planned media merger in India, with the Japanese company accusing the Indian company of not meeting the terms of the merger agreement. Following this failure, Sony filed for arbitration in Singapore, demanding that Zee pay a cancellation fee.
Also read: Sony was ‘predetermined’ to terminate merger agreement: ZEE tells NCLT
According to an exchange filing by Zee, an emergency arbitrator in Singapore has allowed Zee to file suit in India’s company courts against Sony’s Indian units Culver Max Entertainment Pvt and Bangla Entertainment Pvt. The company is seeking to implement the two companies’ merger plan, but Sony is seeking to block the move through an emergency motion before an arbitrator in Singapore.
Referring to India’s National Company Law Tribunal, the filing said, “The emergency arbitrator has no jurisdiction or authority to restrain the company from approaching the NCLT to effectuate the merger.” It also said that the matter falls within the jurisdiction of NCLT. Zay approaches.
Zee’s Mumbai-listed shares have plunged 37% this year on concerns about the failed deal and its fallout. At least 12 brokerages downgraded the stock in January.
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