Indian media giant Zee Entertainment Enterprises Ltd.’s founder Subhash Chandra accused Invesco of plotting a hostile takeover.
Chandra made a rare appearance on the media company’s Hindi news channel, accusing institutional investor Invesco of plotting a hostile takeover. He urged Invesco to behave like a shareholder not like the owner, concluding that they want to take over this company in defiance of India’s laws.
He said, “The real owners of the company are 2.5 lakh public shareholders and not Invesco or Punit Goenka. What they (Invesco) are trying is to take over the company in an illegal way, hiding behind the provisions of the Companies Act. But the broadcasting sector is also governed by the Ministry of Information and Broadcasting (MIB) and there are clear rules for any takeover attempt.”
Concerning the takeover plot, he advised Invesco to make an open offer to the remaining 75% shareholders and buy them out if they agree. They shouldn’t try to do it illegally.
This case has only been raised by the recently announced merger between Zee and Sony Pictures Networks India (SPNI), with Invesco and OFI filing the court case after its announcement.
Invesco did not immediately respond to the request for comment.
Invesco last month sought an exceptional general meeting of shareholders to remove Goenka and two other directors while recruiting six independent directors. The case is being heard by the Mumbai bench of the National Company Law Tribunal (NCLT), while Zee has filed a civil suit in the high court to declare the notice invalid.
