Invesco Global exits ZEEL after Rs 1,004 crore-stake sale via block deal

Invesco Global has exited Zee Entertainment Enterprises by selling a 5.11% stake in the media company through bulk deals on Monday.

Invesco, through its fund OFI Global China Fund, sold 4,91,12,015 shares at Rs 204.50 a share, aggregating Rs 1,004 crore, data on the BSE showed.

On Monday, shares of Zee Entertainment ended 2% down at Rs 203.85 on the NSE. Intraday, the stock fell as much as 3% to a 1-month low of Rs 201.65.

Separate deals showed Hong Kong-based Segantii Capital Management bought 90,19,998 shares of Zee Ent at Rs 204.50/share for Rs 184 crore.

Morgan Stanley Asia Singapore bought 1,58,34,999 shares, and Goldman Sachs Singapore Pte bought 64,20,000 shares at Rs 204.50 apiece.

Until 2 years back, Invesco Global was the single largest public shareholder in Zee Entertainment, with a nearly 18% stake.

However, the fund ran into a spat with the company following the latter’s deal to merge business with Sony Pictures. In late 2021, the fund had sought a meeting of shareholders before Zee Entertainment’s merger deal with Sony Pictures.

The global fund dragged the company to court seeking an extraordinary general meeting with the shareholders.

After months of tussling, the global fund, in March 2022, reached an agreement and backed the merger deal.

But days after resolving its differences, the global fund started gradually exiting the media major.

In April 2022, Invesco sold a 7.8% stake in the company through a book-building process. Then in October 2022, it offloaded a 5.5% stake. With today’s last tranche of sale, Invesco has completely exited Zee Entertainment.

Despite resolving differences, the merger deal between the two companies is yet to be concluded. Delays in regulatory approvals and insolvency proceedings filed by a few lenders, including IndusInd Bank, has elongated the process of completing the merger.

Last month, Zee reached a settlement with IndusInd Bank to withdraw insolvency proceedings against the company.

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