Zee share price rises 20% after Invesco gives up corporate action

Invesco has reversed gears amid ongoing merger between Zeel-Sony.

Mumbai: Zee Entertainment Enterprises Ltd (Zeel) witnessed the share price gain by 20 per cent on Thursday, after its largest shareholder Invesco Developing Markets Fund decided not to pursue corporate action against the company.

The tussle between the company and its shareholder came to a climax on Tuesday after the Bombay high court upheld Invesco’s requisition for an extraordinary general meeting of Zee’s board as legally valid. Soon after, Invesco declared that it would cease to pursue the EGM and that the HC ruling was an important reaffirmation of “shareholder rights.”

Zeel’s management and Invesco have been engaged in a legal battle for control of the company’s board since October 2021. However, Invesco has reversed gears amidst the ongoing Zeel-Sony merger transaction that is taking place. When completed, this will be the biggest M&E acquisition in the country.

Zeel and Sony Pictures Networks India had signed definitive agreements to merge in December. Once the merger is completed, Sony Pictures Entertainment, the parent of SPN India, will indirectly hold a majority 50.86 per cent of the combined entity and the promoters of Zeel will hold 3.99 per cent. Other shareholders will hold a 45.15 per cent stake. Zeel MD and CEO Punit Goenka will take on the role of MD and CEO of the combined entity for the next five years.

“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,” said Invesco, commenting on the deal. “We continue to believe this deal in its current form has great potential for Zee shareholders. 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 company.”

The Zeel-Invesco dispute began when the media company’s top two investors Invesco Developing Markets Fund and OFI Global China Fund LLC, with a combined stake of ~18 per cent stake in the Zeel, sent a requisition notice to the board on 11 September 2021, calling for an EGM.

The investors sought the removal of long-standing directors and close associates of the promoters from the board following which two independent directors Ashok Kurien and Manish Chokhani submitted their resignations. Invesco also sought the removal of Punit Goenka.

Latest Reads
Colors Tamil is all set for the world television premiere of RK Nagar

Mumbai: Entertainment channel Colors Tamil has announced the world television premiere of "RK Nagar" on 3 July at 2:00 pm. An entertaining tale set in a world of crime is here to grapple audiences by exploring plots around politics, romance, and buckets of drama and humour.

Television TV Channels Regional
Zee Media CEO Sudhir Chaudhary quits to pursue entrepreneurial venture

News broadcaster Zee Media on Friday said its chief executive officer Sudhir Zee Media CEO Sudhir Chaudhary quits to pursue entrepreneurial venture.

Television TV Channels News Broadcasting
TCH 2022: Language no barrier to consume South content, only quality

Mumbai: The unending reservoir of talent emerging from the South across languages like Malayalam, Telugu, Tamil and Kannada indicates that language is no longer a barrier in the consumption of content, only quality. Experts discuss the implications of the South content market boom at Viacom18...

Television TV Channels Viewership
TCH 2022: How can Indian content woo the world?

Indian cinema and entertainment has been gradually gaining a share in the global market, with audiences around the world being more receptive to Indian content now than they have been in the past. Spurred, no doubt, in part due to the increased accessibility of the content on online streaming...

Television TV Channels Viewership
NDTV elevates Parimal Dutta to senior vice president

Mumbai: NDTV has elevated Parimal Dutta as senior vice president. He has been associated with the company for over 11 years. He leads the brand solutions team at the news broadcaster. During his career spanning 23 years, Dutta has been associated with The Times of India, Star India, CNBC and...

Television TV Channels Viewership
Colors Tamil to telecast new fiction show 'Pachakili' on 4 July

Mumbai: Exploring marital values, familial bonds and sibling relationships, Colors Tamil, is all set to premiere Pachakili, a brand-new fiction show, starting 4 July.  Based on the life of a naive village belle Pachakili (played by Actor Monisha Arshak) and Adithya (played by Actor Kishore), the...

Television TV Channels Regional
Cosmos-Maya to invest $50 mn to expand into Europe and North America

Mumbai: Indian animation company, Cosmos-Maya, is planning global expansion and aims to grow five fold in the next three years. The company has drawn up a blueprint to scale up in new geographies with an investment in the range of $50 million, expanding in the Europe Union and establishing a...

Television TV Channels News Broadcasting
TCH 2022: Will the 2020s decade drive an insatiable demand for content?

The world is undergoing a fierce transformation courtesy the pandemic, streaming services, new content forms and formats and changing work and entertainment consumption habits.

Television TV Channels Viewership
Khatron Ke Khiladi returns for Season 12; Colors on boards 5 sponsors

India’s most awaited stunt-based reality show Maruti Suzuki presents Khatron Ke Khiladi Charged by Thums Up is set to return on Colors with a blazing new season. Host and renowned filmmaker Rohit Shetty will challenge 14 daredevil contestants with exhilarating stunts as they navigate through their...

Television TV Channels Viewership