Japan’s Sony Group Corp has despatched a termination letter to Zee Leisure Enterprises Ltd, citing its plans to name off the merger between its India unit and the media community, Bloomberg reported on 22 January.
The termination letter was despatched to Zee early on Monday and the Japanese leisure conglomerate is anticipated to disclose it to the change later, individuals conversant in the plan instructed Bloomberg. Within the letter obtained by Bloomberg, Sony said that the termination was as a result of non-compliance with the phrases of the merger settlement.
The termination letter from Sony additionally got here after a 30-day grace interval ended over the weekend when the 2 sides couldn’t attain an settlement on a deadline set in late December.
Earlier on 19 January, it was reported that Sony is ready to drag the plug on the proposed $10-billion merger of its India unit with Zee Leisure after greater than two years of negotiations.
The deal unravelled because the media giants did not agree on who would lead the mixed entity, with the Japanese conglomerate disinclined to have Zee’s Punit Goenka on the helm, mentioned two individuals with direct information of the developments.
On 10 November, Mint was the primary to report that the talks had stalled after Sony’s demand that its govt lead the merged entity as a substitute of Goenka, and that failure to succeed in an settlement by 21 December may derail the merger. The 2 corporations prolonged the deadline by a month however did not iron out their variations.
“It’s over,” mentioned the second particular person conscious of the developments. “After two years and a number of conferences and late-night calls, there’s completely no assembly of minds anymore on this proposed merger. Sony stands resolute that they will’t enable Punit to be the CEO of the merged firm or perhaps a board seat as he’s underneath investigation for alleged diversion of funds.”
(With inputs from Bloomberg)
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Revealed: 22 Jan 2024, 09:08 AM IST
