Zee responds to Invesco's open letter
The company has also criticized Invesco for casting unsubstantiated aspersions on the management
Zee Enterprises has issued a statement in response to Invesco's open letter. Responding to Invesco's demand on the need to evaluate deal with Sony, Zee said that all shareholders, including Invesco will get the opportunity to evaluate and consider the deal with Sony.
"We urge Invesco to stop publishing half truths about the proposed deal in the media and let the Board and the management work towards finalizing this deal," Zee said in a filing.
Zee has also highlighted Invesco's objections in relation to the proposed deal with Sony on the non-compete fee and increase of promoter group's stake to 20%.
On non-compete fee raised by Invesco, Zee said transfer of 2.11% shares in merged entity to Zee Group will be a secondary transfer and will not be dilutive to any shareholders.
Regarding Invesco's suspicion on increase of promoter group's stake to 20%, Zee said the public announcement released by the company clearly states that the promoter family is free to increase its shareholding from the current 4% to up to 20%, indicating that the promoter shareholding in the merged entity will be capped at 20%.
"There is no right provided to the promoters to increase their stake and, therefore, specifying the "manner" of such increase is irrelevant."
Criticizing Invesco for casting unsubstantiated aspersions on the management, Zee said five out of the six existing independent directors on the Board have been appointed after Invesco's investment in 2019 and that Invesco was consulted and their views were positively considered at the time of making such appointments.
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