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Invesco backs Zee, Sony merger, decides against pursuing litigation

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Invesco will continue to monitor the proposed merger's progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM, it said

Zee

 Developing Markets Fund, which owns 18 per cent stake in Zee Entertainment, has backed the Zee merger with Sony and has decided not to pursue litigation against Zee.

In a statement, the company said it is pleased with the Bombay High Court’s ruling, which is an important reaffirmation of shareholder rights in India and the mechanisms under Indian law to hold Boards accountable to their shareholders. "The ruling is a boon for corporate governance in India and a win for shareholder democracy," it said.

"Since we announced our intention to requisition an EGM and add six independent directors to Zee’s Board of Directors, Zee has entered into a merger agreement with Sony. We continue to believe this deal in its current form has great potential for Zee shareholders. We also recognize that, following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company. Given these developments, and our desire to facilitate the transaction, we have decided not to pursue the EGM as per our requisition dated September 11 2021," it said.

 will continue to monitor the proposed merger’s progress. If the merger is not completed as currently proposed,  retains the right to requisition a fresh EGM, it said.

Zee Entertainment, however, has three weeks time from the Bombay High Court to move the Supreme Court to appeal against Bombay HC order.

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