ZEE Entertainment Enterprises Limited’s shareholder, Invesco is said to be looking for a new board to approve the proposed merger with Sony Pictures Networks India.
With the way things stand, ZEE’s Managing Director, Punit Goenka, will continue to helm the new merged entity. However, Invesco, who wanted to remove Goenka as its director before the merger news, is demanding a change in direction for the deal to be assessed.
Invesco, which holds 18% in ZEE, told Times of India, “A newly constituted board supported with the power of independence will probably be greatest suited to guage and oversee the potential for strategic transactions, just like the one introduced (with Sony), in addition to to make determinations on the longer term management of the corporate.”
“We notice that the disclosure of September 22 (the merger announcement) refers back to the future board composition of the corporate at a time when the present composition of the board is topic to a shareholder vote on the again of our EGM requisition.”
The fund stated, “We belief that the present board will adhere to its fiduciary duties and never violate its statutory obligations to convene the EGM as requisitioned by Invesco.”
It further added, “We proceed to imagine that the enterprise (Zee) is effective, whether or not by itself or in strategic alignment with companions akin to Sony. Nonetheless, selections of fabric strategic import should observe and never precede actions in the direction of institution of a correct and impartial governance construction as decided by the corporate’s shareholders.”
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