Zee Entertainment Enterprises told news agency PTI that it will take "necessary action as per applicable law" following demands for the ouster of Managing Director Punit Goenka. Investment firms Invesco Developing Markets Fund and OFI Global China Fund LLC had sought the ouster of Goenka.
The two institutional investors collectively hold 17.88 per cent stake in Zee Entertainment. They had earlier this month sought an extraordinary general meeting seeking the ouster of Goenka and two independent directors Manish Chokhani and Ashok Kurien.
Chokhani and Kurien subsequently resigned from the board.
OFI and Invesco further sought the appointment of their own nominees on the Zee Entertainment board including Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli and Gaurav Mehta. The two investment firms further attached all relevant declarations and information required from each of the proposed independent directors when seeking mandatory approvals from the Ministry of Information and Broadcasting.
Invesco had written to Zee Entertainment opposing its recently announced merger with Sony Pictures India. It termed the occurrence as symptomatic of the company's erratic manner of handling important and serious decisions. It also reiterated its demand for the removal of Goenka.
Last week, Zee Entertainment announced its plan of merger with Sony Pictures India. Zee would 47.07 per cent stake in the combined company whereas Sony Pictures India would 52.93 per cent stake.
In July 2019, Subhash Chandra-led Essel Group had roped in existing investor Invesco Oppenheimer to raise its stake in flagship Zee Entertainment Enterprises by another 11 per cent for Rs 4,224 crore.
(With inputs from PTI)