Invesco funds to divest as much as 7.8% stake in Zee Entertainment Enterprises Ltd

Investment agency Invesco on Wednesday mentioned three funds managed by its creating markets funding staff, together with Invesco Developing Markets Fund, will promote as much as 7.8 per cent of the share capital of Zee Entertainment Enterprises Ltd (ZEEL) to align exposures to the agency with different funds managed by the staff.

Invesco, which is the single-largest shareholder in ZEEL, mentioned after the proposed sale, the three funds managed by its creating markets funding staff will proceed to personal in mixture a minimum of 11 per cent of ZEEL.

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It underscores the funding staff’s perception that the Sony deal in its present type has nice potential for ZEEL shareholders, Invesco mentioned in a press release.

The three funds are launching a bookbuild transaction on Wednesday to promote the shares, it added.

Under a bookbuild transaction, institutional buyers equivalent to fund managers are invited to submit bids for the variety of shares and the value which they’re keen to pay for a similar.

“The purpose of this transaction is to align these funds’ exposures to Zee with other funds managed by the investment team and to achieve an aggregate ownership position in the company that is more in line with the investment team’s portfolio construction approach,” the assertion mentioned.

Last month, Invesco had mentioned it might help the Zee-Sony merger deal and has determined to not pursue the decision for an EGM of ZEEL to take away Managing Director and CEO Punit Goenka and two impartial administrators.

The firm had additionally said that it might help the merger of Zee and Sony saying the “deal in its current form has great potential for Zee shareholders” however added if it isn’t accomplished as at the moment proposed, Invesco retains the proper to requisition a recent EGM.

Last yr in December, Sony Pictures Networks India Pvt Ltd (SPNI) and Zee Entertainment Enterprises Ltd (ZEEL) signed definitive agreements for merger of ZEEL into SPNI following the conclusion of an unique negotiation interval throughout which each events performed mutual due diligence.

At that point Invesco together with OFI Global China Fund LLC, which collectively maintain about 17.9 per cent stake in ZEEL, had opposed the deal.

When the merger deal was introduced in September 2021, the 2 networks had said that Sony would make investments USD 1.575 billion and maintain 52.93 per cent stake within the merged entity and Zee the remaining 47.07 per cent.

Under the phrases of the definitive agreements, SPNI may have a money stability of USD 1.5 billion at closing, together with by means of infusion by the present shareholders of SPNI and the promoter founders of ZEEL.

ZEEL’s chief govt Punit Goenka will lead the mixed firm as its Managing Director & CEO.

The merged entity will turn out to be India’s second-largest leisure community by income with 75 TV channels together with two video streaming companies — ZEE5 and Sony LIV). It may also home two movie studios — Zee Studios and Sony Pictures Films India and a digital content material studio (Studio NXT).

When it’s accomplished Sony Pictures Entertainment Inc will not directly maintain a majority 50.86 per cent of the mixed firm and the promoters (founders) of ZEEL will maintain 3.99 per cent, whereas the opposite ZEEL shareholders will maintain a forty five.15 per cent stake.

In July 2019, Subhash Chandra-led Essel Group had roped in current investor Invesco Oppenheimer to lift its stake in flagship Zee Entertainment Enterprises by one other 11 per cent for Rs 4,224 crore.