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    Invesco is trying to takeover ZEE in a clandestine manner: Subhash Chandra

    Synopsis

    On September 11th, Invesco sent a requisition to the company, seeking an extraordinary general meeting (EGM) of the shareholders to remove Goenka and two other directors, and induction of six independent directors.

    ZeeAgencies
    Subhash Chandra, founder and chairman emeritus of Zee Entertainment Enterprises (ZEE) on Wednesday called out Invesco’s requisition for removal of MD & CEO Punit Goenka and reconstitution of the company’s board, a “clandestine attempt” for an “illegal” takeover of the company.

    Talking to Zee News, Chandra said that Invesco, the largest investor, should realise that they are mere shareholders of the company and not the owners.

    “The real owners of the company are 2.5 lakh public shareholders and not Invesco or Punit Goenka,” he said. “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.”

    On September 11th, Invesco sent a requisition to the company, seeking an extraordinary general meeting (EGM) of the shareholders to remove Goenka and two other directors, and induction of six independent directors.

    While the matter is being heard by the Mumbai bench of the National Company Law Tribunal (NCLT), ZEE has also filed a civil suit in the Bombay high court seeking a direction to declare the notice invalid on multiple legal infirmities.

    Chandra said that this is not the first time when some international company was trying to takeover ZEE.

    “In 1994, I was offered $500 million by an international media baron. I told him, India is not for sale. Today, when we are in a similar situation, I will tell them the same thing,” Chandra said.

    However, he added that if Invesco wants to take over the company, they should do it in the right manner.

    He said that in his personal opinion, Invesco has agreed to some deal - either written or verbal - without naming the partner.

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    “I will suggest them to come out and present their deal also in front of the shareholders. Let shareholders decide. They want to takeover, fine, make an open offer to the remaining 75% shareholders and if they agree, buoy them out. No one can stop you. But don't try to do it illegally,” he said.

    Chandra also said that the government and the regulatory bodies will have to take cognisance of the matter and see Invesco's actions as a takeover attempt.


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    ( Originally published on Oct 06, 2021 )
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