This video is in Hindi and covers the following topics:
Is CEO (Punit Goenka) of Zee Entertainment still going to be removed?
Invesco Developing Markets Fund and OFI Global China Fund LLC, which together hold 17.88 percent of the company’s shares, had requisitioned an EGM to reconstitute the board of Zee Entertainment on September 11
September 22 announcement by Zee to consider merger talks with Sony
Invesco has sent a fresh notice (on 23rd Sep) to the board to hold the extraordinary general meeting (EGM) it had sought and questioned the locus standi of the board in taking a strategic decision on the merger talks with Sony Pictures Networks India (SPNI).
What experts say:
As per rules, the ZEEL board has time up to October 2 to call for an EGM, as requisitioned by Invesco and another 21 days to hold it.
ZEEL board is well within its right to continue with business as usual till the EGM results are announced.
it is not like an election that all work will have to stop till the EGM is conducted. Big decisions should not be taken if the board is questioned, but it has no meaning since ultimately the shareholders’ vote will decide the outcome
What Zeel says:
The board is seized of the matter. The company will take necessary action as per law
Voting at the EGM will be the most crucial part of this protracted battle
The Essel Group holds only a 3.99 percent stake while Invesco and OFI Global have 17.88 percent. A lot will depend on which way the other investors swing.
For the ZEEL board, it is now a race against time to give certainty on the deal to the shareholders to enable them to take a decisive decision if the EGM is called in the next few days.
Most equity participants suggest that the vote will happen based on the comparison between the proposals given by the two warring parties on the strength of the board and the prospects of the strategic deal.
According to the terms of the proposed merger, Punit Goenka will continue as MD and CEO.
Many industry experts see the proposed strategic partnership with Sony as a masterstroke to fight off Invesco’s challenge to oust Goenka
A majority of the board of directors of the merged entity will be nominated by the Sony Group
The next one month is going to be extremely crucial for the fate of Zee Entertainment Enterprises
Credit: Money Control
0 Comments