Zee Entertainment Enterprises (ZEEL) soared 8.57% to Rs 146.75 after the firm has entered into settlement agreement with Culver Max Entertainment (CMEPL) (Sony India) and Bangla Entertainment (BEPL) to mutually terminate transaction documents.
The company will settle all disputes related to the transaction documents entered into with CMEPL and BEPL regarding the Scheme. All parties will mutually terminate these agreements and release each other from any and all claims related to the transaction documents.The parties will jointly apply to the Singapore International Arbitration Centre (SIAC) to withdraw and relinquish all claims related to the transaction documents, including the $90 million termination fee, damages, transaction costs, litigation costs, and other incurred expenses.
The companies will also withdraw the respective composite schemes of arrangement from the NCLT and inform the relevant regulatory authorities.
Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other. The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media & entertainment landscape, signifying the definitive conclusion of all disputes.
On 21 December 2021, ZEEL inked a merger co-operation agreement (MCA) with Culver Max and BEPL in relation to the composite scheme of arrangement, which was approved by the Mumbai bench of the National Company Law Tribunal (NCLT).
The merger would have created a $10 billion media giant with the financial muscle to take on global powerhouses Netflix Inc. and Amazon.com Inc.
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ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.
The company reported a consolidated net profit (from continuing operations) of Rs 125.66 crore in Q1 FY25, steeply higher than Rs 3.87 crore in Q1 FY24. Revenue from operations declined 6.89% to Rs 1,983.80 crore in Q1 FY25 as compared with Rs 2,130.53crore recorded in Q1 FY24.
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