Reliance Industries Limited (RIL) on Wednesday issued a clarification that though it was interested in acquiring Zee Entertainment, the deal fell through and regrets getting involved in a dispute between the entertainment group and its US-based investor, Invesco. Gaya, further said that it never resorted to “hostile transactions”.
“We regret being caught in a dispute between Zee and Invesco. The news coming in the media is not true. In February/March 2021, Invesco assisted Reliance in arranging direct discussions between our representatives and Zee’s founding family member and Managing Director Mr. Puneet Goenka. We had put forth a comprehensive proposal for the merger of our media assets with Zee on a fair valuation of all our assets and Zee,” RIL said in a statement.
The clarification on behalf of Mr. Mukesh Ambani’s company was stated earlier by Invesco that it had brought in RIL to help it acquire Zee Entertainment.
Reliance further stated that “Zee and our properties were valued on similar parameters… However, differences arose between Mr. Goenka and Invesco regarding the requirement of the founding family to increase their stake by subscribing to preferential warrants.” Investors believed that founders can always increase their stake through market purchases. At Reliance, we respect all founders and have never resorted to any hostile transactions. Hence, we do not proceed further. Grow up.”
RIL noted that differences arose between Zee and Invesco as the proposal involved continuation of Mr. Goenka as Managing Director and issuance of ESOPs to the management, including Mr. Goenka.
At this point, the proposed talks have failed as Invesco has long been demanding a change in the management of Zee Entertainment, and wants Mr. Goenka to be ousted.
Invesco, which owns about 18 per cent stake in Zee, has alleged financial irregularities and sought holding of an extraordinary general meeting of the board and shareholders to facilitate the appointment of six new independent board members and the removal of Mr Goenka. Used to be.
It has also objected to certain terms of Zee’s proposed merger with Sony, which Invesco claims gives Zee’s founding family, including Mr Goenka, the option to increase their stake in the company to 20 per cent from the current 4 per cent, according to Reuters. gave information.