Enter Reliance! The Zee story just got a blockbuster twist to it with it's largest shareholder Invesco disclosing that a merger with Mukesh Ambani backed Reliance was proposed to Zee management in February. The disclosure comes as Punit Goenka, MD & CEO of Zee Ent in a 6-page letter to the exchanges claimed that Invesco wanting to push a merger with a 'large Indian group' was acting against him as he rejected the said proposal.
Invesco spokesperson stated "We wish to make clear that the potential transaction proposed by Reliance (the “Strategic Group" referenced but not disclosed in the 12 October 2021 communication by Zee) was negotiated by and between Reliance and Mr. Goenka and others associated with Zee’s promoter family. The role of Invesco, as Zee’s single largest shareholder, was to help facilitate that potential transaction and nothing more."
Disputing Goenka's claim that the merger was rejected as it was a loss for Zee shareholders the US based investment firm said, "The implication that we as a shareholder would seek out a transaction for Zee that is dilutive to the long-term interests of ordinary shareholders, including ourselves, simply defies logic."
Zee's disclosure comes less than a day after Justin Leverenz, chief investment officer of Invesco Developing Markets Equities, wrote an open letter to shareholders of Zee, raising concerns over the proposed $1.6 billion takeover by Sony.