Invesco and Zee dispute escalated: Reliance Industries had offered to merge with Zee Entertainment, Zee turned it down

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The tussle between Zee Entertainment and its largest foreign investor Invesco continues to escalate. Invesco has said that Mukesh Ambani’s Reliance Industries had offered to merge Zee Entertainment. However, G’s MD Puneet Goenka turned down the offer.

stock market information

The board of Zee Entertainment has told the stock exchange that Invesco itself had come up with a proposal for merger with a large Indian conglomerate and some entities. After this Invesco has given this answer. On the other hand, the hearing between Zee and Invesco will be held in the Bombay High Court on October 21. The court has ordered Invesco to file the affidavit by October 20.

The High Court asked G’s counsel that when the matter is before the National Company Law Tribunal (NCLT), why was it brought to the High Court? On October 2, Zee Entertainment went to court against Invesco. Invesco had filed a case with NCLT.

Puneet Goenka was offered to be the MD

In the merged entity, Puneet Goenka was offered to be the MD and there was talk of giving a 4% stake. In the information given to the stock exchange, Zee Entertainment alleged that Invesco’s words are contradictory. The company said that the stock exchanges have been misinformed by Invesco.

Zee Entertainment did not name the company.

However, Zee Entertainment did not mention the name of the company that Invesco had come up with. Now Invesco has given a clarification in this matter. Invesco has clearly stated that Reliance Industries had come up with a proposal to merge some of its media businesses.

Invesco is demanding removal of the board

Let us tell you that Invesco Media Company is seeking restructuring of the board of directors of Zee Entertainment. Along with this, there was a demand to convene an Extra Ordinary Meeting (EGM) for the removal of the company’s MD Puneet Goenka and two other directors. This demand was turned down by Zee Entertainment. After this, Zee signed a deal with Sony Pictures. The deal is to be completed in 90 days.

In the proposed deal, Sony India will hold around 53% stake in the merged entity and the rest will be held by Zee Entertainment. Invesco is opposing this merger.

Investors would have lost 10 thousand crores

According to Goenka, this deal would have caused a loss of about Rs 10,000 crore to the company’s investors. Invesco said the deal proposed in February was negotiated between Reliance and the promoters of Goenka and Zee. Invesco said its role in this was only to advance the deal.

Dish TV rejects Yes Bank’s demand

On the other hand, on Wednesday, Dish TV has rejected Yes Bank’s demand to call the EGM. Yes Bank wants to replace the board of Dish TV. Dish TV said that this demand is not correct under regulatory rules and hence it will not convene the EGM. There is also a dispute with Yes Bank and Dish TV. Dish TV is promoted by Zee Group.

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