Zee says Invesco’s double standards exposed as it had proposed merger offer too
The offer was turned down by Zee's Managing Director and Chief Executive Officer Punit Goenka as he felt the merging entities of the strategic group were over-valued.
In a new development, Zee Entertainment Enterprises Ltd in a stock exchange filing today has stated that Invesco Developing Market Funds had earlier offered them to merge the company with a large Indian conglomerate.
As per the statement, “The offer was turned down by Zee's Managing Director and Chief Executive Officer Punit Goenka, "as the merging entities of the strategic group were over-valued", the company claimed.
"A deal was presented by Mr. Aroon Balani and Mr. Bhavtosh Vajpayee, representatives of Invesco, to (Zee MD and CEO) Mr. Punit Goenka in February 2021, involving the merger of the Company and certain entities owned by a large Indian group (Strategic Group)," Zee said in a regulatory filing.
It further stated, “As per the deal presented to Mr. Punit Goenka, upon completion of the aforesaid merger, the strategic group would have held a majority stake in the merged entity and Mr. Punit Goenka would have been appointed as the MD & CEO of the merged entity.”
According to Zee, Invesco, on learning about Goenka's opposition to the purported merger offer with the strategic group, had said that the "deal would be consummated with or without him"
"Invesco time and again reminded Mr. Goenka that if he were to refuse to progress the deal, he and his family would lose out," the company claimed.
"The promoter group of the Company was being offered 3.99% shareholding of the Merged Entity i.e. no dilution in the existing stake of the promoter group of the Company, and Mr. Goenka was further offered employee stock options (ESOPs) (with no vesting conditions), representing approx. 4% of the shareholding of the Merged Entity," the statement said.
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