ZEEL to consider raising funds on June 6
The conglomerate has not specified the amount it plans to raise.
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On June 1, Zee Entertainment Enterprises Limited (ZEEL) said that it is considering raising funds on June 6 through various possible routes.
The company said in a filing, “A meeting of the Board of Directors is scheduled to be held on June 6 to consider raising of funds by way of issuance of equity shares and/or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods.”
The conglomerate has not specified the amount it plans to raise.
On May 23, Zee stated in a regulatory filing that it has terminated the merger cooperation agreement (MCA) and has sought a termination fee of $90 million from Sony-group owned Culver Max Entertainment Pvt. Ltd. and its entity Bangla Entertainment Pvt. Ltd. (BEPL) for failing to comply with obligations under the MCA.
"Culver Max and BEPL have failed to comply with their obligations under the Merger Cooperation Agreement (MCA). Therefore, the Company has terminated the MCA and called upon Culver Max and BEPL to pay the termination fee i.e. the aggregate amount equal to USD 90,000,000, in accordance with the MCA," said Zee in an exchange filing.
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This is four months after Sony had said ZEE failed to satisfy merger conditions and initiated arbitration proceedings before Singapore International Arbitration Centre (SIAC) claiming $90 million as a termination fee for alleged violations of MCA. ZEE initiated legal actions to contest Sony's claims before SIAC.
Recently, Zee's regulatory filings revealed that the company spent Rs432 crore on merger-related costs between 2022 and 2024. The breakdown shows costs reaching Rs 256 crore in 2023-2024, with Rs 176 crore spent the previous year.
After two years, Sony called off merger with Zee on January 22, 2024, which kickstarted court proceedings.
