2 min read.Updated: 15 Sep 2021, 12:01 PM ISTLata Jha
Invesco, through Invesco Developing Market Fund and OFI Global China Fund Llc, owns 17.88% in the company. It has demanded that Zee hold an EGM and ask shareholders to vote on removal of Goenka, two other independent directors, and appointing six new independent directors
NEW DELHI: Earlier this week, Invesco Developing Markets Fund and OFI Global China Fund llC, the shareholders of Zee Entertainment Enterprises Ltd, called for an extraordinary general meeting (EGM) of the shareholders of the company, seeking removal of Punit Goenka as director of ZEEL.
Invesco, through Invesco Developing Market Fund and OFI Global China Fund Llc, owns 17.88% in the company.
In a letter addressed to the board of director of ZEEL, Invesco also sought removal of two other directors Manish Chokhani and Ashok Kurien, while proposing the appointment of six independent directors - Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta.
In a report released on Wednesday, brokerage firm Edelweiss said with promoters holding just 3.99% stake in ZEE and the stock languishing, it was only a matter of time before the board was revamped.
“The Board needs to call an EGM within 21 days following receipt of the requisition to decide on these proposals. Else, investors themselves can call an EGM in 45 days. Simple majority is likely to be enough to get these approved at the EGM," it said, adding that there was uncertainty if Goenka will stay as CEO.
The report also offers an overview of the directors which Invesco has recommended to be inducted in the board:
Surendra Singh Sirohi: A telecommunication professional, Sirohi has been a member (Technology), Telecom Commission, and ex-officio secretary to the ministry of communication and IT. He has been instrumental in formulating several regulatory and strategic initiatives and key policies for inclusive growth of all segments of the telecom sector and has held several techno-managerial senior leadership positions in in the department of telecom, Mahanagar Telephone Nigam Limited, Telecom Consultants India Ltd, and BSNL.
Naina Krishna Murthy: Is the founder and managing partner of law firm K Law. Having been appointed the external Ombudsman of SB Energy, a Softbank company, she has also served as director with companies such as National Commodity and Derivatives Exchange Ltd and is currently on the board of Bajaj Energy Ltd and IndoStar Capital Finance Ltd.
Rohan Dhamija leads management consulting firm Analysys Mason's practice across the Middle East and India. He has over 15 years' experience of advising corporations and investors in the TMT industry on strategic and operational issues. His media and digital media (consumer internet) expertise includes areas such as convergence, cable digitisation, broadcaster economics, e-commerce and other consumer internet sub-verticals, and digital services.
Aruna Sharma is an ex-Indian Administrative Services officer who retired as secretary – ministry of steel, in 2018. Prior to that, she had held positions such as secretary, ministry of electronics and information technology, additional chief secretary, ministry of rural development and Panchayati Raj, Government of Madhya Pradesh.
Srinivasa Rao Addepalli has 20 years of experience in areas of corporate strategy, mergers and acquisitions, business transformation and innovation. He was earlier chief strategy officer at Tata Communications and is the Founder and CEO of GlobalGyan Academy of Management Education, providing contextual, comprehensive and continuing learning programs to corporates and executives.
Gaurav Mehta is a partner at Raine a firm that provides financial advice on mergers, acquisitions, financial restructurings. Prior to this, he was the head of India Investment Banking at UBS Investment Bank where he focused on the TMT sector and advised on large M&A and significant capital raising (equity and debt) transactions in the Indian media and communications and consumer internet sectors. He has advised and raised capital for clients including Bharti Airtel, Bharti Infratel, Indus Towers, Reliance Communications, Videocon D2h and Flipkart.
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