Invesco backs Zee and Sony merger, decides not to sue

Invesco Developing Markets Fund, which owns 18% of Zee Entertainment’s capital, supported Zee’s merger with Sony and decided not to take legal action against Zee.

In a statement, the company said it was pleased with the Bombay High Court ruling, which is an important reaffirmation of shareholder rights in India and the mechanisms provided by Indian law to hold boards accountable to their shareholders. “The decision is a boon for corporate governance in India and a victory for shareholder democracy,” he said.

“Since announcing our intention to seek an EGM and 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 agreement, in its current form, has great potential for Zee shareholders. We also recognize that, following the completion of the merger, the board of directors of the newly combined company will be substantially reconstituted, which will help achieve our objective of strengthening the oversight of the company’s board of directors. Given these developments and our desire to facilitate the transaction, we have decided not to proceed with the EGM in accordance with our request dated September 11, 2021,” he said. declared.

Invesco will continue to monitor the progress of the proposed merger. If the merger is not completed as currently proposed, Invesco reserves the right to request a new EGM, he said.

Zee Entertainment, however, has three weeks from the Bombay High Court to petition the Supreme Court to appeal against the Bombay HC order.

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