Invesco renews demand for EGM to reshuffle Zee Entertainment board 

Invesco has renewed its demand for an extraordinary general meeting to replace the board of Zee Entertainment. The second letter comes after the media giant announced a merger with Sony Pictures Networks India last week. The first letter was sent on September 12 by Invesco Developing Markets Fund and OFI Global China Fund IIC, that hold 17.88 per cent shares in the company, seeking an extraordinary general meeting and the removal of Managing Director Punit Goenka and two directors of the company, Manish Chokhani and Ashok Kurien.

Following this, Zee Entertainment announced its merger with Sony, after which Invesco shot off its second letter on September 23. It reiterated its demand for the removal of non-independent directors as well as asked for six additional independent ones to be inducted.

Invesco and OFI Global China Fund LLC have said that the Sony-Zee merger deal was struck in an ‘erratic manner’. “A newly constituted board supported with the strength of independence will be best suited to evaluate and oversee the potential for strategic transactions,” stated Aroon Balani, vice president of Invesco in his September 23 letter, as mentioned in a report in Bloomberg.

A Zee representative said that the company will take necessary action according to law, the news site added. Zee is yet to confirm receiving the letter.

This development comes after Sony signed a non-binding offer to buy Zee. Sony will own 52.93 per cent of the new entity, while Zee Entertainment will hold 47.07 per cent. According to the deal, Punit Goenka, who Invesco and OFI Global are seeking to oust, would be the Managing Director and CEO of the merged entity. Sony Group will decide on the majority of the board of directors of the merged entity.

The two board members, Manish Chokhani and Ashok Kurien, that Invesco sought to remove, have resigned.

Also read: Zee board gives in-principle approval for merger with Sony Pictures Networks India

Also read: Two Zee Ent institutional investors seek removal of Punit Goenka as director