The Bombay High Court on Tuesday temporarily restrained Zee Entertainment Enterprises Limited’s biggest shareholder Invesco from calling an Emergency General Meeting (EGM) — a crucial win for Zee and its founder Subhash Chandra, reported Bloomberg.
The ruling can be challenged in a higher court. Invesco, unhappy with the way Zee is run, wants to remove Punit Goenka as its CEO, overhaul the board and get a new owner. Zee’s shares advanced 4.6% on BSE after the verdict.
Earlier today, Zee said its board meeting to consider and approve the firm’s financial results for the second quarter has been cancelled due to lack of quorum.
The media company has been embroiled in a legal dispute regarding a board revamp and management changes with two Invesco-controlled funds, which together own nearly 18% of the firm.
The Mumbai-headquartered company was scheduled to hold its board meeting on Wednesday, Oct. 27.
Zee said in its exchange filing that the next date of the meeting would be informed with a fresh notice.
In September, Sony’s India entertainment unit announced a deal to buy a majority stake in Zee to become the country’s largest broadcaster.
U.S. investment firm Invesco had publicly lashed out at Zee and objected to some terms of its proposed merger with Sony, weeks after the deal announcement.
Earlier this year, Invesco had tried to forge a deal between companies owned by Mukesh Ambani’s Reliance Industries and Zee.
Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!