Shares of Zee Entertainment Enterprises Ltd. gained the most in about six months after its largest shareholder decided not to pursue an extraordinary general meeting demanding an independent board in the broadcaster.
“We continue to believe this deal in its current form has great potential for Zee shareholders,” Invesco Developing Markets Fund said in a statement. “Following the merger’s consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company.”
Invesco, which along with OFI Global China Fund holds a 17.88% stake in Zee Entertainment, however, said if the merger with Sony Pictures Networks India Pvt. is not completed as currently proposed, it retains the right to requisition a fresh EGM.
Reacting to the development, shares of Zee Entertainment jumped as much as 20% as of 10:20 a.m. on Thursday, compared with a flat Nifty 50.
