Zee Entertainment, Invesco reach truce. All you want to know


by 5paisa Research Team Last Updated: Mar 25, 2022 - 08:41 pm 33.2k Views
Listen icon

It looks like Zee Entertainment Enterprises Ltd (ZEEL) and its biggest minority shareholder Invesco Developing Markets Fund, have buried the hatchet and ended a boardroom and court drama that had been dragging on and capturing the headlines over the past several months. 

The truce reportedly came after Invesco withdrew a call for a special shareholders’ meeting to remove Zee managing director and chief executive officer Punit Goenka and reconstituting the board. 

Interestingly, this development comes just a day after Invesco won its appeal against Zee in the Bombay High Court. The court had allowed its appeal against a single judge order that had granted Zee an injunction, effectively restricting Invesco to act on its requisition to call an EGM.  

What did Invesco actually say?

Invesco said that it supported the proposed merger between Zee and Sony Pictures Networks (SPN) India. 

“We continue to believe this deal in its current form has great potential for Zee shareholders,” Invesco Developing Markets Fund said in a statement. “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.”

“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. 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,” it added.

How much stake does Invesco hold in Zee?

Along with OFI Global China Fund, Invesco holds a 17.88% stake in Zee. 

But is the issue now a done deal for good?

Apparently yes. But Invesco did say that since the Sony India-Zee merger is not complete yet, it does retain the right to call for a fresh EGM. 

Invesco said it 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”.

What really was the whole issue all about?

The two parties had been locked in a dispute over the appointment of Goenka and the current board of directors. Invesco and OFI Global had been seeking to oust Goenka and appoint six new independent directors via an EGM. 

What were the terms of the Zee-Sony merger?

As per the merger deal finalised in December, SPN will own a 50.86% stake in the merged entity while Zee’s promoter entity Essel Holdings will own 3.99%. The remaining 45.15% will be owned by public shareholders. 

How did the stock market react to the volte face by Invesco?

The development sparked a rally in the Zee stock, which zoomed nearly 17%, or Rs 43.10, in an otherwise volatile market before closing at Rs 299.15 on the Bombay Stock Exchange.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.