After announcing support to Sony-Zee merger, Invesco to offload about 8% stake

Invesco is the largest investor in Zee Entertainment and holds 18 per cent of the firm. It will be selling 7.4 crore shares worth Rs 2,200 via a block deal on Thursday, sources said. It will likely be selling shares in the Rs 270-290 range, sources said.

Kotak has been appointed as the banker of the deal. The stock ended at Rs 290.95 on BSE on Wednesday.

Till last month, Invesco was in a dispute with Zee promoters and the company over the removal of the MD & CEO and sought an Extraordinary General Meeting (EGM). Though eventually, it dropped the call and came in support of the Sony and Zee merger instead.

“We continue to believe this deal in its current form has great potential for Zee shareholders,” Invesco said. “We also recognise that, following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company.”

Earlier, in its requisition, the offshore investor had asked ZEE’s board to conduct an EGM of the shareholders to vote on the removal of Goenka and two other directors – who have quit since then – and the induction of six new independent directors.

After rejecting the requisition, ZEE had moved to the Bombay High Court and secured an injunction from a single-judge Bench, which was challenged by Invesco.