ZEEL spurts after HC allows Invesco appeal against order on EGM

24 Mar 2022 , 10:26 AM

Invesco Developing Markets Fund, Zee Entertainment Enterprises largest shareholder, on 23 March 2022 said it decided not to pursue an extraordinary general meeting (EGM) to add six independent directors as Zees merger with Sony will achieve the funds aim of strengthening board oversight.

Division Bench of the Bombay High Court has on 22 March 2022, allowed the appeal filed by Invesco Developing Markets Fund and OFI Global China Fund and set aside the Order passed by the learned single judge of the Bombay High Court. The Division Bench has directed that status quo be maintained for a period of 3 weeks hom 22 March 2022. The company still awaits the detailed order in this regard.

Invesco Developing Markets Fund and OFI Global China Fund on 11 September 2021 served a requisition notice to ZEEL to hold an EGM to remove Punit Goenka from the firms board as director.

Goenka, son of Essel Group founder and chairman Subhash Chandra, is managing director and chief executive officer of ZEEL.

The two institutional investors also called for the removal of two of ZEELs independent directors, Ashok Kurien and Manish Chokhani. The letter also proposed the appointment of six independent directors, including Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.

On 13 September 2021, ZEEL informed that Chokhani and Kurien resigned as non-executive non-independent directors.

Later in December 2021, ZEEL and Sony Pictures Networks India (SPNI) signed definitive agreements to merge ZEEL into SPNI and combine their linear networks, digital assets, production operations and program libraries. After the closing, Sony Pictures Entertainment Inc. (SPE) will indirectly hold a majority 50.86% of the combined company, the founders of ZEEL will hold 3.99%, and the other ZEEL shareholders will hold a 45.15% stake.

ZEEL is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.

ZEELs consolidated net profit fell 25.30% to Rs 298.73 crore on 22.60% decline in net sales to Rs 2,112.64 crore in Q3 December 2021 over Q3 December 2020.

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