NEW DELHI: Shares of Zee Entertainment Enterprises on Thursday rallied nearly 17 per cent after Invesco Developing Markets Fund, the largest shareholder in the company, said it will support the Zee-Sony merger deal and has decided not to pursue the call for ZEEL EGM to remove Managing Director and CEO Punit Goenka and two independent directors.
The stock jumped 16.83 per cent to settle at Rs 299.15 on BSE. During the day, it zoomed 19.99 per cent to Rs 307.25. On NSE, it rallied 16.89 per cent to close at Rs 299.30.
Its market valuation jumped Rs 4,139.83 crore to Rs 28,733.83 crore on BSE. In volume terms, 41.16 lakh shares were traded on BSE and over 8.67 crore on NSE.
Invesco Developing Markets Fund said it will support the merger of Zee and Sony, contending the "deal in its current form has great potential for Zee shareholders" but added if it is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM.
Two days after the Bombay High Court ruled that Invesco's call for EGM was legally valid, the investment firm in a statement said, "Since we announced our intention to requisition 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 this deal in its current form has great potential for Zee shareholders."
"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. Given these developments, and our desire to facilitate the transaction, we have decided not to pursue the EGM as per our requisition dated September 11, 2021," it added.
Invesco said it will "continue to monitor the proposed merger's progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM".
Last year in December, Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) signed definitive agreements for the merger of ZEEL into SPNI following the conclusion of an exclusive negotiation period during which both parties conducted mutual due diligence.