Zee Entertainment’s share jumps 6% due to Invesco selling its 5.51% stake

Invesco Developing Markets Fund will sell a 5.51% stake in Zee Entertainment Enterprises Ltd (ZEEL) in a block trade that will fetch the investor as much as $169.5 million.

This is the second block deal by Invesco in seven months, which offloaded a 7.8% stake in Zee Entertainment in April.

As per the report, Invesco will offload 52,935,068 equity shares, or 5.51% of the total shares outstanding in the company, at a price range of ₹250-₹263.7 per share. The floor price is at a discount of 5.32% (at the lower end of the price band) to Monday’s closing price of ₹263.30 per share on the BSE.

Invesco Limited is an Independent American investment Management Company headquartered in Atlanta, Georgia, with additional branch offices in 20 countries. Its mutual stock is a constituent of the S&P 500 and trades on the New York Stock Exchange.

A mail sent to Kotak Securities, which is the sole broker for the block deal, elicited no response till the time of going to press. 

(EGM), which it has been following since September 2021. It was doing this to rebuild the board, citing corporate governance matters.

With a market capitalization of ₹26,303.8 crores, the stock currently trades 26% lower than its 52-week high of ₹378.60 touched on December 15, 2021. The share price hit a 52-week low of ₹200.50 on May 20, 2021. 

However, in a U-turn in March, Invesco said that it was not seeking to add six independent directors to Zee’s board. Instead, it would support the proposed merger of Zee with Sony.

Last Friday, the company received shareholders’ approval for the proposed merger with Sony Pictures Networks India Pvt. Ltd. The proposed merger deal has already received a nod from the Competition Commission of India (CCI) on October 4, 2022. It also got a green signal from the domestic bourses – the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) – in July 2022.

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