The battle for Zee Entertainment is not over yet. Most brokerages have given their views on the recent changes in the company’s management and board rooms. However, the entire battle is now based on the numbers game and vote share. It remains to be seen how much vote share both the parties – Invesco Developing Market Fund and Essel Group can garner in their support.
The company has 21 days for the EGM meeting. Within this time frame, the board of the company has to take a decision on convening the EGM and after that they will take 21 days to hold the EGM meeting. In this way, both the parties have about 40 days.
We have already seen that Zee Entertainment shares have been bought in bulk following the demand for convening the EGM meeting. Veteran investor Rakesh Jhunjhunwala has bought half a percent stake. At the same time, BofA Securities has increased its stake from 1 per cent to 1.5 per cent.
What is Zerodha’s co-founder’s opinion on closing stop loss orders for NSE options?
Invesco holds the largest stake in Zee as a single investor. Apart from this, there are many other investors including LIC. Invesco itself has demanded the convening of the EGM meeting and the removal of the company’s Managing Director and CEO, Puneet Goenka.
According to information received by Moneycontrol from sources, Essel Group is implementing a two-pronged strategy to compete with Invesco. The first strategy is to garner maximum vote share. Essel Group is well aware of the statistics and voting pattern as it has voted for Manish Chokhni and Ashok Kurien recently. Although it was not used later due to his resignation, but it must have informed the Essel Group about the voting pattern.
On the other hand, the company is looking for a big helper. You will remember that in 2019 also Zee Entertainment was facing similar threats. The company was under heavy debt. In such a situation, the lenders wanted to take control of this company in their hands. The Essel Group then brought in Invesco, which saved it from falling into the hands of lenders, making the largest single investment in the company.
According to sources, this time the company is also looking for such a big helper, who at this time voluntarily comes with an open offer. The company has a large number of investors. So it has a share pattern and voting will be done in a very democratic manner. However, the party which will be able to garner more support in its favor, will surely emerge as the winner.
Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.