U.S. investment firm Invesco on Monday publicly criticized the television company Zee and opposed certain conditions for its merger with Japan’s Sony Group, asking media company shareholders to support an attempt to restructure its management.
Invesco funds hold nearly 18 per cent of Gee, and its first public outcry comes just days after allegations surfaced that it was planning to take on Invesco, one of India’s largest television groups.
The controversy centered around Invesco’s call to revamp Jeevan’s board and remove its CEO, Puneet Goenka, which was flagged off by India’s market regulator this year, in light of corporate governance shortcomings and financial irregularities. Gee rejects Invesco’s request and says it has tightened its procedures.
In an open letter and press release, Invesco said last month that the terms of the planned Zee-Sony merger would give Gee’s founding family the option to increase their stake from 4 percent to 20 percent. Absolutely opaque “.
Zee did not respond to a request for comment. Sony did not immediately respond to requests for comment outside of its normal business hours.
“This ambiguity in the key features of the Zee-Sony announcement should be of concern to all stakeholders.
At the expense of ordinary shareholders, we firmly oppose any strategic contract structure that unjustly rewards selected partners, such as the advertiser family.
In addition to ousting the current Zee CEO Goenka, Invesco has recommended the appointment of six new independent panel members to Zee. It has asked the Indian tribunal to compel the Indian tribunal to convene a meeting to consider its demands, and Gee has two weeks to respond.
Invesco sought support from Zee partners in a letter on Monday stating that there was an urgent need to strengthen independence within Zee’s group.
In his televised appearance last week, Sea founder Subhash Chandra, CEO of Mr Goenka’s father, asked Invesco to “behave like a partner rather than an owner” and “you have to fight, then I will fight again.”
Invesco said in a statement that Gee had made “an irresponsible and distrustful public relations effort”.
In recent weeks, Zee, a popular name in India’s television and film landscape, has seen support from Bollywood stars, who hope the community will end their crisis soon.