The proposed quick-fix marriage between Zee Entertainment Enterprises Ltd (Zee) and Sony Pictures Networks (Sony) is not turning out to be the ‘happily-ever–after’ story, as yet, even as the alliance itself seems to have drawn universal approval. Far from accepting the merger, with Punit Goenka continuing as managing director (MD), Invesco Developing Markets Fund (Invesco) has ratcheted up the fight to a new high. Invesco, which along with OFI Global China Fund, LLC, has combined equity holding of over 18%, dragged Zee to the National Company Law Tribunal (NCLT) for failing to announce the extraordinary general meeting (EGM) it had requisitioned for the removal of Mr Goenka.
NCLT, on Thursday, ordered Zee to hold the meeting as requisitioned by Invesco and observed that it was a ‘mandate of the law’ and not a ‘discretionary power’ of the board to decide whether or not to call it. The Zee board also met that day to discuss Invesco’s demands. This was not the outcome journalists and institutional analysts, who ostensibly ‘track’ media companies, were expecting. Their questions about Invesco’s move reveal how easily they are swayed by the company’s view and how Punit Goenka and the promoter group are still able to control the narrative. Some of their questions were answered during the hearing, while others needed some digging into Invesco’s history with Zee.
Why Is Invesco in Such a Hurry?
Friday (today) is the last working day before…