Invesco withdraws EGM requisition notice for ZEE’s board reconstitution
On Thursday, in a statement, Invesco Developing Markets Fund (Invesco) announced that it has decided to withdraw its requisition notice that sought the removal of MD and CEO Punit Goenka from the board of ZEE.
Invesco is the largest shareholder of Zee Entertainment. Invesco welcomed the Bombay High Court’s order against Zee as ‘an important reaffirmation of shareholder rights’.
After the news came in, Zee Entertainment Enterprises (ZEE) share price skyrocketed 20% and hit the upper circuit as Invesco, the largest shareholder of ZEE, decided to withdraw its requisition notice which sought the removal of MD and CEO Punit Goenka from the board of ZEE.
Invesco said it supports the proposed merger of ZEE with Sony Pictures Networks India (SPN). The fund said that it had decided not to pursue an extraordinary general meeting (EGM) to add six independent directors as Zee’s merger with Sony will achieve the fund’s aim of strengthening board oversight.
Invesco further said, “Since we announced our intention to requisition, 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. We also recognize that, following the merger, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company.”
Invesco welcomed the ruling saying, “We are pleased with the Bombay High Court’s ruling, which we view as 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.”
Last year, Zee Entertainment and Sony Pictures Network (SPN) announced that they have signed definitive agreements to merge and combine their linear networks, digital assets, production operations, and programme libraries under the two media giants, creating the second-largest entertainment network in the country.
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