- Zee Entertainment witnessed a surge of more than 17% in early morning trading on Thursday.
- The market capitalization of Zee Entertainment Enterprises Limited reached ₹28,786 crore ($3.7 billion).
- The development comes after Invesco Developing Markets Fund decided not to pursue the EGM.
Zee Entertainment Enterprises Limited’s share price surged more than 17% in early morning trading on Thursday. The company was trading at ₹300.25 as of 10:01 a.m. on March 24.
With this, the market capitalization of Zee Entertainment Enterprises Limited reached ₹28,786 crore ($3.7 billion).
The development comes after Invesco Developing Markets Fund – the largest shareholder of Zee Entertainment Enterprises – decided not to proceed with the extraordinary general meeting (EGM).
The investment firm noted that the newly combined Zee-Sony entity will be substantially reconstituted, which will increase oversight by its board of directors. Invesco, in a statement, also said it would continue to monitor the progress of the proposed merger. Invesco still retains the right to request a new EGM if the merger is not completed as proposed.
$ZEEL.NSE just the start of a higher degree wave 3. Accumulate on the downsides. A long way to go to reach new heights.
— (@TrendonomicsHD) March 24, 2022
The two companies – Zee Entertainment and Invesco – had been embroiled in a legal dispute since last year. Invesco reportedly wanted changes at Zee in light of alleged corporate governance and financial irregularities that have plagued the company. The problems were even reported by the market regulator. Invesco, which owns an 18% stake in Zee Entertainment, had proposed the appointment of six new independent members to Zee Entertainment’s board of directors. He also requested the removal of Punit Goenka, the current Chief Executive Officer (CEO) bid of Zee Entertainment.
The investment company on Sept. 11 also asked Zee to convene an EGM of shareholders to consider their demands. The Bombay High Court also recognized Invesco’s EGM claim as legally valid.
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