'Will continue to vigorously arbitrate': Sony on SIAC saying Zee free to go to NCLT to enforce merger deal

Sony’s Indian unit said it was 'disappointed' after a Singapore arbitration centre rejected an emergency petition by the Japanese company for a stay of proceedings in enforcement of Zee-Sony merger deal. 

Sony scrapped the merger on January 22, ending a deal that could have created one of India’s biggest TV broadcasters, claiming breaches of contract by Zee Entertainment Enterprises Limited.

Zee Entertainment can ask National Company Law Tribunal to enforce the $10-billion merger, said SIAC. 

SIAC said it had no jurisdiction or authority to block Zee from approaching the tribunal, adding the merger fell within the purview of the National Company Law Tribunal of India, Zee said on Sunday in a stock exchange filing.

Sony said in a statement that it was disappointed by the decision but it was a procedural one ruling only whether Zee could pursue its application with NCLT

“We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s (Sony India) right to terminate the merger agreement and seek a termination fee and other remedies,” it added.

“We remain confident in the merits of our position in both Singapore and India.”

The Zee-Sony merger, in the works for two years, would have created an Indian TV juggernaut with more than 90 channels across sports, entertainment and news that would have competed with the likes of Walt Disney, and Mukesh Ambani’s Reliance. In terminating the merger, Sony also cited alleged failure by Zee to meet some financial terms of the deal, a dispute over compliance issues including disposal of some Russian assets and its $1.4 billion Disney cricket rights deal, Reuters reported last week.

At 1340 hours on Monday, Zee's scrip on BSE was trading 4% higher at Rs 180.