Singapore Tribunal Rejects Sony’s Appeal, Allows Zee to Proceed to NCLT
The Singapore International Arbitration Centre (SIAC) has dismissed Sony’s plea against Zee. Sony had demanded a stay on court proceedings in India after rejecting a $10 billion merger deal.
Sony Disappointed with SIAC’s Decision
Sony expressed disappointment with the Singapore International Arbitration Centre’s (SIAC) decision, stating that it was “disheartened” by the outcome. This legal battle stems from a merger proposed by Zee and Media Men Ventures. Media Men Ventures is a shareholder of Zee.
Sony Seeks Directive from National Company Law Tribunal
Sony has requested directives from the National Company Law Tribunal (NCLT) to halt Zee’s merger. In December 2021, both Zee and Sony had signed an agreement for the merger. However, Sony sent a letter on January 22 to Zee, revoking the deal.
SIAC’s Jurisdiction Doesn’t Include NCLT Matters
SIAC clarified that it does not have the authority to intervene in matters related to the National Company Law Tribunal (NCLT) as the merger falls under the jurisdiction of local authorities. Sony had filed an emergency arbitration under the SIAC in Singapore.
Sony’s Wish for Puneet Goenka to Remain CEO Denied
When the agreement was signed in 2021, it was agreed that Puneet Goenka would lead the newly formed company post-merger. However, it was decided later that Puneet Goenka would not become CEO. Sony had advocated for Puneet Goenka to become CEO of the new company.
SEBI Scrutiny Leads Sony to Revoke CEO Appointment
Sony decided against appointing Puneet Goenka as CEO due to scrutiny by the Securities and Exchange Board of India (SEBI). Instead, Sony extended support to NP Singh, Sony’s Managing Director and CEO in India, to become CEO of the new entity.
Sony’s Statement: Disappointed After Two Years of Negotiations
In a statement addressing the developments, Sony expressed its disappointment, stating that they couldn’t reach an agreement even after two years of negotiations. They expressed commitment to expanding their presence in the evolving market and providing entertainment to their viewers worldwide.
