ZEE shares in focus amid reports of ED search at Essel group office, update on Sony deal termination

Shares of ZEE Entertainment Enterprises Ltd (ZEE) will be in focus on Thursday morning amid a media report that suggested search operations were carried out by Enforcement Directorate (ED) at Essel Group's office in Mumbai. The ZEE stock will also be in news after the company updated stock exchanges about its decision to initiate legal action to contest Culver Max and BEPL’s claims in the arbitration proceedings before Singapore International Arbitration Centre (SIAC).

As per the ET Now report, the central probe agency questioned Essel's officials on Wednesday afternoon. Many offices of Essel Group operate from the Continental building premises, the report suggested. It has offices of Zee Learn Ltd, Zee Media Corporation Ltd, Essel Homes, Essel Infra & Housing and Mount Litera Edu Foundation.

In the case of Sony deal termination, ZEE said it has issued a reply to Culver Max and BEPL inter alia specifically denying any breach of its obligations under the MCA and reiterated, saying it complied with all its obligations in good faith.

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ZEE denied that Culver Max and BEPL were entitled to terminate the MCA and the claim for termination fee is legally untenable and has no basis whatsoever.

ZEE asserted that Culver Max and BEPL were in default of their obligations to give effect to and implement the Scheme, sanctioned by the Hon’ble National Company Law Tribunal.

"The company has called upon Culver Max and BEPL to immediately withdraw the termination and confirm that they will perform their obligations to give effect to and implement the Merger Scheme, sanctioned by the Hon’ble National Company Law Tribunal. The Company has reserved all its rights in this regard," ZEE told stock exchanges.

Further, ZEE said it approached the National Company Law Tribunal, Mumbai bench inter alia seeking directions to implement the merger scheme and that it has initiated appropriate legal action to contest Culver Max and BEPL’s claims in the arbitration proceedings before Singapore International Arbitration Centre (SIAC).

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