Zee Entertainment calls Invesco's NCLT move 'impulsive or premature'

Zee Entertainment today said it'll not comment on any "impulsive or premature" steps taken by Invesco Developing Markets Funds and OFI Global China Fund, LLC. Zee's response came following a report in LiveMint that said Invesco has moved the National Company Law Tribunal (NCLT) against Punit Goenka-led company for not announcing the date for an extraordinary general meeting (EGM).

The case is reportedly listed for hearing at the NCLT bench in Mumbai on Thursday. Zee will be represented by Trilegal and Invesco by Dhruve Liladhar & Co. However, Invesco has not issued any official statement on the matter.

Also read: Everything you want to know about Invesco, the fund seeking removal of Zee Entertainment's Punit Goenka

Meanwhile, a Zee Entertainment spokesperson told Business Today, "The board of the company remains committed to act within the framework of law and is focused towards enhancing the company's growth and shareholder value. It is in the process of taking the required steps within the statutory period. The company does not wish to comment on any impulsive or premature steps taken by Invesco Developing Markets Funds and OFI Global China Fund, LLC."

The rules for listed companies suggest any company that receives a call for holding an EGM must do so in three weeks if the investor seeking it holds a 10 per cent or more stake in the company.

Also Read: Invesco renews demand for EGM to reshuffle Zee Entertainment board

The first letter was sent on September 12 by Invesco Developing Markets Fund and OFI Global China Fund LLC, seeking an extraordinary general meeting and removal of Managing Director Punit Goenka and two directors of the company, Manish Chokhani and Ashok Kurien. A three-week deadline means Zee has time till October 2 to file a response. The Atlanta-based global fund holds over a 17 per cent stake in the Indian entertainment major.

Earlier, Invesco had demanded Punit Goenka's ouster as the director of Zee Entertainment and had proposed six independent directors be appointed at the EGM, all chosen by it.

Invesco renewed its demand for an EGM on September 23 after the media giant announced a merger with Sony Pictures Networks India. 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.

Also Read: Zee-Sony merger: A win-win for both, strategically and geographically