Will Oyo be forced to give 7% equity to Zostel? The matter goes back to 2015 when Zo Rooms and Ritesh Agarwal-led Oyo started merger talks. Next year, the deal was called off by Oyo. In 2018, Zo approached the Supreme Court which directed to start the arbitration process Manu Kaushik | March 16, 2021 | Updated 22:56 IST Representative Image Recently, an arbitral tribunal ruled in favour of Zostel Hospitality, a chain of backpackers' hostels, in its three-year-old legal battle with SoftBank backed-Oyo Hotels and Homes. Under the deal, Oyo was supposed to acquire Zostel's business. In return, it was expected to give 7 per cent shareholding to Zostel. Zostel claimed that it has transferred its entire business but Oyo refused to transfer shareholding.