Invesco reiterates support for Zee-Sony merger, not to pursue EGM
Zee Entertainment’s largest shareholder has welcomed the recent Bombay HC ruling as a ‘boon for corporate governance in India’
Invesco has dropped plans to pursue an 'extraordinary general meeting' to add 6 independent directors, as per media reports. The move comes after the Bombay HC quashed an order grantim interim injunction on holding an EGM.
Invesco Developing Markets Fund, Zee Entertainment’s largest shareholder with an ownership interest of nearly 18%, has issued a statement on the Bombay High Court’s decision recognizing Invesco’s requisition as legally valid and upholding Invesco’s right to requisition an EGM at Zee.
“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.
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. We also recognize 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 11 September 2021.”
Zee Entertainment Enterprises Ltd. has issued a statement saying that it welcomes the decision by Invesco Developing Markets Fund and OFI Global China Fund LLC. “for its belief in the true potential of the proposed merger with Sony Pictures Networks India (SPNI) and for its faith in the management’s approach”.
“As the Company takes the required steps forward in seeking all the regulatory approvals as mandated by law, to complete the proposed merger, it continuesto seek the required valuable support from all its stakeholders. Invesco has been an integral part of ZEE’s value-creation journey for almost two decades; and the Company acknowledgesthis support. Under the able guidance of its esteemed Board and the strategic approach undertaken by its management, the Company remains focused on the completion of the proposed merger with SPNI, which is in the best interest of all the stakeholders.”
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