Shares of Zee closed up 17% on the BSE on Thursday following the rise. Extraordinary General Meeting (EGM) Zee shareholders. But there is no clarity on the company’s stance following the change in circumstances.
Currently, a planned merger between Zee and Sony’s local unit in Japan is pending regulatory and shareholder approval.
Invesco holds about 18% stake in Zee and its support for the merger proposal will be significant as the transaction requires the approval of 75% shareholders of the Mumbai-listed company. Goenka owns less than 4% of Zee, which was founded by his father Subhash Chandra In 1992.
“We are pleased with the judgment of the Bombay High Court, which we see as a significant reaffirmation of the rights of shareholders in India and a way for the Board under Indian law to hold its shareholders accountable. Since we announced our intention to seek EGM, Zee has entered into a merger agreement with Sony Pictures. Following the completion of the merger, the board of the new joint venture company will be significantly restructured, achieving our objective of strengthening the company’s board oversight. Given these developments and our desire to facilitate transactions, we have not decided to pursue EGM, “said Invesco. EGM was sought to involve the directors.
Zee welcomed Investco’s decision to consider the possibility of a proposed merger with Sony Pictures and the management’s approach. “The company is focused on completing the proposed merger, which is in the best interests of all stakeholders,” Zee said.
Investco said it would withdraw the pending EGM request before the National Company Law Tribunal (NCLT). However, he added that he would “continue to monitor the progress of the proposed merger” and that if that failed, he could seek a new EGM again. Invesco has an investment of $ 7.9 billion (over Rs. 59,000 crore) in India.