Three funds managed by Invesco’s Developing Markets investment team, including Invesco Developing Markets Fund, have launched a bookbuild transaction to sell up to a 7.8% stake in Zee Entertainment (Zee). Post the completion of the bookbuild, Invesco will continue to own an 11% stake in Zee. The company has also reaffirmed its support for the Zee-Sony merger.

In a statement, Invesco said that the purpose of this transaction is to align these funds’ exposures to Zee with other funds managed by the investment team and to achieve an aggregate ownership position in the company that is more in line with the investment team’s portfolio construction approach.

"Upon completion of the bookbuild, funds managed by Invesco’s Developing Markets investment team, including Invesco Developing Markets Fund, will continue to own in aggregate at least 11% of Zee, underscoring the investment team’s belief that the Sony deal in its current form has great potential for Zee shareholders," the statement adds.

Earlier, Invesco, which is the largest shareholder in Zee with an ownership interest of nearly 18%, decided not to pursue the extraordinary general meeting (EGM) as per its requisition dated 11 September 2021.

The investment management fund had also backed the Zee-Sony merger deal saying that the board of the newly combined company will be substantially reconstituted, which will achieve its objective of strengthening board oversight of the company.

Invesco had requested an EGM to remove Goenka from the board of Zee. The company also wanted to appoint six independent directors to Zee’s Board of Directors.

The company, however, changed its stance despite the fact that the Bombay High Court recognised its requisition for an EGM as legally valid besides upholding its right to requisition an EGM at Zee.

Invesco had also said that it will continue to monitor the proposed merger’s progress. If the merger is not completed as currently proposed, Invesco retains the right to requisition a fresh EGM, the company added.