Oppenheimer exited Zee Entertainment on Monday after selling the remainder of its 5.65 percent stake in the company, thereby ending a two decade-long association with the company.

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Over 4.9 crore shares or 5.7 percent of the total equity of Zee Entertainment exchanged hands in a large deal on Monday. The deal took place at a price of Rs 204 per share.

CNBC-TV18 had reported last week that Oppenheimer plans to sell 5.65% stake via block deals.

The firm had been a financial investor with Zee Entertainment since 2002.

Invesco completed the takeover of OppenheimerFunds in 2019, with the combined entity named Invesco Oppenheimer Funds.

The combined entity came to Zee's rescue in late-2019 when the company's promoters looked to sell stake to repay debt. It acquired an additional 11 percent stake, thereby increasing its stake to 18.8 percent. This also made Invesco Oppenheimer the largest investor in Zee Entertainment.

Invesco Oppenheimer acquired the stake at Rs 400 per share, for a total consideration of Rs 4,224 crore. The proceeds were said to be used for paying of part of the Rs 13,000 crore debt of various Essel Group companies. Today, shares of Zee are trading around Rs 200.

Soon after, in September 2021, Zee announced a merger with Sony, which ran into trouble as the largest shareholder opposed the same. Invesco sought an EGM to remove Zee MD & CEO Punit Goenka along with two other independent directors. It also sought the appointment of six of its own members to the board. Invesco opposed the merger, calling the move "symptomatic of the company's erratic manner of handling important and serious decisions."

However, last month, Invesco withdrew its request for an EGM and also said that the merger in its current form has plenty of potential for Zee's shareholders.

India's competition regulator approved the merger in October with conditions, while shareholders also approved the same last week.

Prior to Monday's sale, Invesco Oppenheimer sold 7.74 percent stake in April last year and another 5.5 percent in October last year.

First Published:Apr 18, 2023 10:48 AM IST