US-based investment firm Invesco has sold its entire stake of 5.11% in Mumbai-based media and entertainment company Zee Entertainment Enterprises Ltd. The sale was made through an open market transaction, with the shares being bought by Segantii India Mauritius, Morgan Stanley Asia Singapore Pte, and Goldman Sachs Singapore Pte ODI, among others. The shares were sold at an average price of Rs 204.50 apiece, for a total transaction value of Rs 1,004.34 crore.
In October of last year, Invesco and OFI Global China had sold 5.51% in Zee for more than Rs 1,396 crore through open transactions. In March 2022, Invesco had dropped its plans to remove Zee Entertainment Enterprises’ MD Punit Goenka and recast the media entity’s board of directors. Instead, the foreign investor said it would support the plan to merge Sony and Zee, citing its great potential for Zee shareholders.
The sale of its stake in Zee comes after a tumultuous period for the media company, which has been embroiled in controversy over allegations of financial irregularities. In December 2021, the company’s auditor, Price Waterhouse & Co, resigned citing an inability to obtain sufficient audit evidence. Zee’s shares have been under pressure since then, with the company’s management attempting to reassure investors by appointing a new auditor and promising to improve its corporate governance practices.
Invesco’s decision to sell its stake in Zee could be seen as a lack of confidence in the company’s ability to turn things around. However, the sale could also be a strategic move, as Invesco looks to reallocate its investments in the Indian media and entertainment space. The industry is undergoing a period of rapid transformation, with the rise of over-the-top (OTT) platforms and the increasing popularity of regional content. Invesco may be looking to invest in companies that are better positioned to capitalize on these trends.
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