Zee-Sony merger deal not in interest of small shareholders: Invesco

In its letter on Monday, Invesco said the lack of clarity around key aspects of the Zee-Sony announcement should concern all shareholders

Invesco, the largest shareholder of Zee Entertainment Enterprises (ZEEL), has raised questions over the company’s proposed merger with Sony Pictures, saying the transaction is not in the best interest of all shareholders and will benefit only the promoters, who have defaulted on bank loans.

The US fund said the non-binding agreement between ZEEL and Sony “gifts” a 2 per cent equity stake to the promoters of Zee in the guise of “non-compete” fee, even though the current managing director and chief executive officer, Punit Goenka, would continue to run the merged entity for the next five years.

“This is dilutive