Zee is gearing up to present its argument, citing that the expenditures encompass diverse facets, amounting to a sum exceeding Rs 700 crores.
Amidst the ongoing dispute with Sony concerning the planned merger, Zee has reportedly accrued substantial costs amounting to Rs 700 crore, as per a Hindu Businessline report. The report outlines Zee’s intention to present its case, emphasizing that the expenditure encompasses a range of factors. These include divesting businesses, addressing claims deemed unwarranted but necessitating attention, fulfilling guarantees, securing insurance tailored to Sony’s preferences, and adhering to Sony’s directives by discontinuing certain operations. The upcoming sessions at the National Company Law Tribunal are expected to shed further light on Zee’s stance and the intricacies of the incurred costs.
According to the report, Sony deviated from the agreed terms by making requests beyond the specified scope, such as requiring Zee to account for losses related to its deal with Disney Star, even before the formal execution of the agreement. Sony was reportedly informed about this agreement through public disclosures that provided detailed information. It is alleged that Sony pressured Zee to proceed with the agreement while awaiting Star’s waiver for the corporate guarantee from Sony’s ultimate parent entity.
Legal experts anticipate that Zee’s argument will focus on Sony’s decision to terminate the deal during an advanced stage of the merger, not due to any shortcomings on the part of Punit Goenka or the Zee group, but rather stemming from Sony’s premeditated intention to cancel the merger agreement.