Invesco supports Zee-Sony merger deal; not to pursue EGM call to remove ZEEL MD

New Delhi: Investment firm Invesco Developing Markets Fund, the largest shareholder in Zee Entertainment Enterprises, on Thursday said it will support the Zee-Sony merger deal and has decided not to pursue the call for ZEEL EGM to remove Managing Director and CEO Punit Goenka and two independent directors.

Zee Entertainment Enterprises Ltd (ZEEL) has also welcomed the move and said it continues to seek the required valuable support from all its stakeholders.

Invesco said it will support the merger of Zee and Sony, contending the "deal in its current form has great potential for Zee shareholders" but added if it is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM.

Two days after the Bombay High Court ruled that Invesco's call for EGM was legally valid, the investment firm in a statement said, "Since we announced our intention to requisition an EGM and add six independent directors to Zee's Board of Directors, Zee has entered into a merger agreement with Sony. We continue to believe this deal in its current form has great potential for Zee shareholders".

"We also recognise that following the merger's consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company. Given these developments, and our desire to facilitate the transaction, we have decided not to pursue the EGM as per our requisition dated September 11, 2021," it added.

Invesco said it will "continue to monitor the proposed merger's progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM".

Commenting over the development, the leading entertainment major in a statement said it welcomes the decision by Invesco Developing Markets Fund and OFI Global China Fund LLC "for its belief in the true potential of the proposed merger with Sony Pictures Networks India (SPNI) and for its faith in the management's approach".