Invesco Developing Markets Fund is tipped to offload a 5.51% stake in Zee Entertainment Enterprises (ZEEL) in a block trade that could fetch the investor as much as $169.5 million, sources familiar with the development said. The block trade is expected to see Invesco offload over half of its stake in Zee Entertainment, which stood at 10.14% as of June 30, held through OFI Global China Fund LLC.
The block trade involves sale of 52.93 million shares at a price range of Rs 250 to Rs 263.7 per equity share, a discount of 0.0% to 5.2% to the Monday’s closing price of Rs 263.70.
At the lower end of the price range, the stake sale will fetch Invesco $160.7 million or Rs 1,323.4 crore, while at the upper end, Invesco would earn $169.5 million or Rs 1,395.9 crore.
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In April this year, Invesco had sold a 7.73% stake in ZEEL for Rs 2,092 crore, which came after Invesco withdrew its demand for an extra-ordinary general meeting (EGM), which it was pursuing since September 2021, to push for the ouster of Zee’s CEO Puneet Goenka and also rejig of the board.
On March 23, Invesco said it had decided not to pursue the EGM to add six independent directors, and instead reiterated its support for the proposed merger of Zee with Sony.
“We continue to believe this deal in its current form has great potential for Zee shareholders. We also recognise that following the merger, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening the board oversight of the company, Invesco said in a statement in April