Zee shares spike amid NCLT's plea acceptance and emergency arbitration in Singapore

The National Company Law Tribunal has accepted the plea filed by Zee to revive the merger deal with Sony.

On Tuesday, Mumbai bench of NCLT issued a notice on a petition moved by Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises (ZEEL), directing Sony Pictures Network India, now known as Culver Max, to file a reply within three weeks.

Plea in NCLT

Zee Entertainment Enterprise had moved the National Company Law Tribunal (NCLT) and Singapore International Arbitration Centre (SIAC) against Sony Pictures Network India's termination of the merger deal on January 25.

Also Read: Zee-Sony merger deal fallout; Here's everything you need to know

The firm in a regulatory filing said that they had moved the Mumbai bench of NCLAT "seeking directions to implement the merger scheme".

Emergency Arbitration

Meanwhile, hearing for an emergency arbitration in the Zee Entertainment - Sony merger will take place at the Singapore International Arbitration Centre (SIAC) on Wednesday, 31 January, reported CNBC-TV18.

Following this, the shares of Zee saw an uptick on Tuesday. The shares gained up to 8% in the morning priced at Rs 175 a piece.

Two-years of intense negotiation on the eagerly awaited Zee-Sony merger came to an end when Sony terminated the proposal on January 22. At the heart of the merger's failure was the inability of the parties to reach a consensus on who would be heading the merged entity. Reports suggested that Zee wanted its CEO and MD Punit Goenka to lead the newly formed firm while Sony wanted its CEO N P Singh to preside at its helm.