ZEEL reportedly plans to raise funds on June 6

On June 1, Zee Entertainment Enterprises Limited (ZEEL) announced that it is planning to raise funds on June 6 through various possible avenues.

The company said in a statement: “A meeting of the board of directors is scheduled for June 6 to consider raising funds through the issuance of capital shares and/or any other securities eligible under the terms permitted, including but not limited to. to a private placement, a placement in a qualified institution, a preferential issue or any other method or combination of methods.

The conglomerate did not specify the amount it plans to raise.

On May 23, Zee said in a regulatory filing that it had terminated the merger cooperation agreement (MCA) and requested a termination fee of $90 million from Culver Max Entertainment Pvt, owned by the Sony group. Ltd. and its entity Bangla Entertainment Pvt. Ltd. (BEPL) for non-compliance with obligations under the MCA.

“Culver Max and BEPL have failed to comply with their obligations under the Merger and Cooperation Agreement (MCA). Therefore, the Company has terminated the MCA and requested Culver Max and BEPL to pay the termination fee , making the total amount equal to USD 90,000,000, as per the MCA,” Zee said in an exchange filing.

This comes four months after Sony said ZEE had failed to meet the terms of the merger and initiated arbitration proceedings before the Singapore International Arbitration Center (SIAC), seeking $90 million as compensation. termination compensation for alleged violations of the MCA. ZEE has taken legal action to challenge Sony’s claims at SIAC.

Recently, Zee’s regulatory filings revealed that the company spent Rs 432 crore on merger-related costs between 2022 and 2024. The breakdown shows that the costs reached Rs 256 crore in 2023-24, with 176 crore Rs spent in the previous year.

After two years, Sony canceled the merger with Zee on January 22, 2024, triggering legal proceedings.