Zee-Sony merger failure: Emergency arbitration to take place in Singapore on January 31

Following the fallout of the Zee-Sony merger deal, an emergency arbitration hearing is set to take place at the Singapore International Arbitration Centre (SIAC) on Wednesday, January 31, as reported by CNBC-TV18.

Zee Entertainment initiated legal action to challenge Sony's claim of a $90 million (approximately ₹748.5 crore) termination fee. The dispute has been escalated to the Singapore International Arbitration Centre (SIAC) by the Japanese firm.

The $10 million merger termination was owed to the disagreement over who would helm the combined entity. Reportedly, Sony had objected to appointing Zee CEO Punit Goenka as CEO of the merged company due to an investigation into his conduct by SEBI.

Sony issued the termination letter following the conclusion of a 30-day grace period during which the two parties were unable to come to an agreement on a deadline established in late December.

The aftermath of the termination did not go well for Zee with its stocks crashing in the market. January 23, the day after the merger was scrapped, Zee faced the highest single-day fall of 30.50% and ended at Rs 152.50.

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