Zee Entertainment Enterprises Ltd's share price increased by up to 15% today (August 27) after the media company announced that it has reached an agreement to settle all problems with Sony about the termination of the merger.
In the afternoon trade, Zee stock rose to an intraday high of Rs 154.9 before falling to Rs 147.7, still up over 10% from the previous close.
"As part of the settlement, the companies (Zee and Sony Pictures India) have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums," a statement issued by Zee Entertainment read.
Previously, in January of this year, Sony Pictures India terminated a proposed $10 billion merger with Zee Entertainment, canceling a December 2021 agreement.
Sony also requested a USD 90 million termination fee as a result of Zee Entertainment's alleged breaches of the merger agreement.
