Amid an ongoing dispute with investment management firm Invesco, Zee Entertainment Enterprises Limited (ZEEL) has issued a statement slamming Invesco for casting aspersion upon the company's image.
The tussle between the entertainment company and its largest shareholder Invesco centers around Zee's impending deal with Sony, which Invesco has objected to.
Zee, in its statement, has said that all its shareholders, including Invesco, will be provided with the chance to examine the deal with Sony.
"In the meantime, we urge Invesco to stop publishing half truths about the proposed deal in the media and let the Board and the management work towards finalising this deal," Zee has stated, Mint reported on Wednesday, 13 October.
The Zee-Invesco Squabble Over Sony Deal
Invesco, on Monday, 11 October, issued an open letter to Zee's shareholders highlighting management issues in the company.
Invesco, in the letter, articulated its concerns over Zee's proposed merger with Sony, suggesting that the deal would unjustly benefit the founding family, news agency IANS reported.
"This non-binding agreement gifts a 2 percent equity stake to the promoters of Zee in the guise of a "non-compete," even though the current MD and CEO of Zee will continue to run the proposed merged entity for the next five years. This is dilutive to all other shareholders, which we consider unfair," the letter said.
The letter added that the Zee-Sony merger announcement notes that the Zee promoter family will have the right to raise their stake from 4 per cent to 20 per cent in the merged entity.
Invesco further said that as a shareholder of ZEEL, it stood by its decision to call an extraordinary general meeting (EGM) to hold the ZEEL Board and management accountable.
Invesco's open letter came close on the heels of the National Company Law Tribunal (NCLT) direction to Zee to submit its reply to a plea filed by Invesco by 22 October. Invesco, in it petition, has requested an EGM.
(With inputs from Mint and IANS)
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