Invesco Developing Markets Fund, which owns 18 per cent stake in Zee Entertainment Enterprises (ZEEL), on Thursday said it supports the Zee-Sony merger and has decided not to pursue the litigation calling for a shareholders’ meet to remove Managing Director and Chief Executive Officer Punit Goenka.
Zee has also welcomed the move and said it continues to seek the required valuable support from all its stakeholders.
In a statement, Invesco said it is pleased with the Bombay High Court’s ruling, which is an important reaffirmation of shareholder rights in India and the mechanisms under Indian law to hold boards accountable to their shareholders. “The ruling is a boon for corporate governance in India and a win for shareholder democracy,” it said.
“Since we announced our intention to requisition an EGM and add six independent directors to Zee’s Board of Directors, Zee has entered into a merger agreement with Sony. We continue to believe this deal in its current form has great potential for Zee shareholders,” Invesco said.
The statement added: “We also recognise that, following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the firm. Given these developments, and our desire to facilitate the transaction, we have decided not to pursue the EGM as per our requisition dated September 11 2021.”
Invesco will continue to monitor the proposed merger’s progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM, it said.
Zee Entertainment, however, has three-week time from the Bombay High Court to move the Supreme Court to appeal against the Bombay HC order.
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