Shares of Zee Entertainment Enterprises on Thursday rose nearly 17 percent after Invesco Developets Markets Fund, the company’s largest shareholder, said it would support a merger deal between Zee-Sony and decided not to follow through on ZEEL EGM’s call to remove its managing director. and CEO Puneet Goenka and two independent directors.
The stock jumped 16.83 per cent to settle at Rs 299.15 on BSE. During the day, it was enlarged by 19.99 per cent to Rs 307.25.
In the NSE, it rose 16.89 per cent to close at Rs 299.30.
Its market valuation jumped by Rs 4,139.83 crore to Rs 28,733.83 crore due to BSE.
In terms of volume, 41.16 thousand shares were traded on the Bahrain Bourse and over Rs 8.67 crore on the New York Stock Exchange.
The Invesco Developets Markets Fund has stated that it will support the merger of Zee and Sony, saying that “the transaction in its current form has significant potential for Zee shareholders,” but added that if it is not completed as currently proposed, Invesco reserves the right to request a new informal public meeting. .
Two days after the Bombay High Court ruled that Invesco’s invitation to the EGM was legally valid, the investment firm said in a statement: “Since we announced our intention to request an extraordinary meeting at the General Assembly and to add six independent directors to Zee’s Board of Directors, Zee has entered into a merger agreement. with Sony. We continue to believe that this transaction in its current form has great potential for Zee shareholders.”
“We are also aware that after the completion of the merger, the board of directors of the newly merged company will be significantly reconstituted, which will achieve our objective of strengthening the board of directors’ oversight of the company. In view of these developments, and our desire to facilitate the transaction, we have decided not to proceed with the extraordinary general assembly meeting in accordance with to our request dated September 11, 2021.”
Invesco said it would “continue to monitor the progress of the proposed merger. If the merger does not complete as currently proposed, Invesco reserves the right to request a new Extraordinary Extraordinary Illegal Meeting.”
Last December, Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) signed definitive agreements to merge ZEEL into SPNI after the expiry of an exclusive negotiation period during which the two parties conducted mutual due diligence.
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