Invesco Developing Markets Fund on Wednesday accused the Zee management of delaying the Extraordinary General Meeting (EGM) through convenient disclosures.

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Late Tuesday, Zee had informed the exchanges that Invesco had been pushing the company for a deal with an investor other than Sony, without naming the investor. Zee said it had rejected that deal as it was not in the interests of the company’s shareholders.

Invesco has rejected the claim.

“We wish to make clear that the potential transaction proposed by Reliance (the “Strategic Group” referenced but not disclosed in the 12 October 2021 communication by Zee) was negotiated by and between Reliance and Mr. Goenka and others associated with Zee’s promoter family,” Invesco said in its release.

“The role of Invesco, as Zee’s single largest shareholder, was to help facilitate that potential transaction and nothing more,” the release said.

The fund said Zee CEO Punit Goenka’s claims defied logic as Invesco would never support a proposal dilutive to the long-term interests of ordinary shareholders.

"We have made various sincere efforts over the last two years to bring Zee back to good health. Discussions around strategic alignments have been just one part of this effort,” the release said.

“Zee’s 12 October disclosure is yet another tactic to delay an EGM that will give shareholders their right under Indian law to vote for a slate of independent trustees and pave the way for a healthier future for Zee," the release said.

Earlier this week, Invesco had issued a statement reiterating its call for an overhaul of the Zee board and also expressed concerns that the deal on Zee’s proposed merger with Sony India would benefit the Zee promoters while harming the interests of the minority shareholders.

(Edited by : Anshul)

First Published:Oct 13, 2021 10:11 AM IST