Zee’s 12 October release is tactic to delay AGM. Why will the largest shareholder negotiate a deal detrimental to Zee, asks Invesco
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Zee Entertainment’s largest shareholder Invesco Developing Markets Fund said in a statement that the company’s October 12 disclosure is another tactic to delay the extraordinary general meeting (EGM).
Zee made a disclosure in October 12 saying that an offer was presented to them by Invesco in February this year to merge the company with entities linked to a large Indian group.
In its reply, Invesco issued a statement on October 13 saying that they reject the assertions made by Zee in its October 12 release.
“We specifically note that the implication that we as a shareholder would seek out a transaction for Zee that is dilutive to the long-term interests of ordinary shareholders, including ourselves, simply defies logic,” said Invesco.
It also revealed that the strategic group referenced in the October 12 disclosure was Reliance.
“The role of Invesco, as Zee’s single largest shareholder, was to help facilitate that potential transaction and nothing more,” added Invesco in its statement.
Invesco also said that they have made various efforts over the last two years to bring Zee back to good health.
“Discussions around strategic alignments have been just one part of this effort. Zee’s 12 October disclosure is yet another tactic to delay an EGM that will give shareholders their right under Indian law to vote for a slate of independent trustees and pave the way for a healthier future for Zee,” the US Fund said.
Reiterating its confidence in Zee, Invesco said that the recent interest of Sony, as well as the previous interest of Reliance, should be a reminder to all Zee shareholders of the enormous value that lies in this company, much in contrast to its dismal performance under the current leadership and Board over the last few years.
(This is a developing story, check back from updates)