Disney-owned Star India has sought $940 million from Zee Entertainment, in damages in a London court for the termination of a cricket broadcasting agreement, the Indian broadcaster said on Wednesday.

Shares of Zee Entertainment were down 1.3% in afternoon trade.

In January, Zee quit a $1.4 billion deal with Star India, under which the latter was to license television broadcasting rights for the International Cricket Council's tournaments to Zee for four years.

Zee said in a statement on Wednesday that Disney India has quantified damages to the tune of $940 million as of August 31, which Zee has rejected.

"The arbitration is at its initial stage and the London Court of International Arbitration Tribunal is yet to determine if the company is liable in any manner," the company said in a statement.

Zee said that Star India breached the agreement and had sought a repayment of 685.4 million rupees (about $8 million), according to its December-quarter earnings report.

The company is among the biggest players in India's media and entertainment industry, where the likes of Reliance Industries and the Adani Group are expanding their presence.

The company has raised funds, cut jobs to trim costs and is working on reducing losses in some businesses, with the aim to double its margins by 2026.

Last month, Zee and Sony settled all claims after their $10 billion merger failed, while the $8.5 billion-merger of Reliance and Disney's Indian media assets got approvals paving the way to create an entertainment behemoth.