New Delhi, PTI. Mukesh Ambani-led Reliance Industries tried to buy entertainment company G. This information was given by Invesco, the largest shareholder of the country’s largest listed media company Zee Entertainment Enterprises (GEEL), on Wednesday. He said that he had tried to negotiate a deal between the two companies. However, he denied that he tried to get the deal done at a low price. Its statement came a day after GEEL chief Puneet Goenka informed the company’s board about a proposal by Invesco.
Goenka had told the board that in February 2021, Invesco had proposed mergers with some companies of a large Indian conglomerate (Strategic Group). According to Goenka, this deal would have caused a loss of about Rs 10,000 crore to the company’s investors. However, Goenka did not reveal the name of this big Indian group. Invesco said the deal proposed in February was discussed between the promoters of Reliance, Goenka and Zee. Zee’s largest shareholder Invesco said its role in this was only to move the deal forward.
Whereas Puneet Goenka told the board on Tuesday that the proposal for this deal was brought by Invesco and if the deal was done, the shareholders would have lost thousands of crores. Further, Goenka said that Strategic Group would have a majority stake in the company and he was proposed to be made MD and CEO with four per cent stake in the merged company. On the proposal to merge GEEL with rival Sony Pictures Networks India (SPNI), Invesco said it was against the long-term interests of common shareholders.
Invesco wants to remove three directors including Puneet Goenka
The dispute between Zee Entertainment and Invesco began over Invesco’s demand to convene an Extraordinary General Meeting (EGM). Invesco and OFI Global China Fund LLC had called an EGM for the removal of three directors, including Zee Entertainment CEO Punit Goenka, and the appointment of six independent directors. Puneet Goenka is the son of Subhash Chandra. There is a legal battle going on between Zee and Invesco in three institutions (Bombay High Court, NCLT and NCLAT) regarding this issue.