I truly hope that this will be my first and last communication on this matter so that we can focus on our value-creation journey at ZEE, writes Goenka
ZEE's MD & CEO Punit Goenka finally breaks the silence on the ongoing war of words between the company and one of its investors, Invesco. He mentions having compelled to speak about this issue, in an official statement on October 14, given the twist and turns it is taking.
He begins by acknowledging how Invesco has been an extremely strong support to the Company, for the most part, and how these unfortunate circumstances upset him today.
"All I want is a better tomorrow for ZEE, one that is filled with higher returns and value for shareholders and immense growth opportunities for the Company and its people. But one is also formed with utmost honesty, transparency and positivity. Unfortunately, the way the current situation is unfolding is what disappoints me," he pens.
Goenka focuses on preserving the future of this Company, and not his position. "This fight is to ensure the Company continues to gain immense growth opportunities and become a stronger and more formidable player in the Media & Entertainment sector."
He then goes on to present the series of communications exchanged with Invesco to the Board of Directors of ZEE. During his briefing to the Board, he claims to have emphasised the points pertaining to the proposal from Invesco. "My attention was on the imbalance observed in the valuation and how it was not in the best interest of our shareholders. The only reason I did not agree to the proposal was that the shareholder value was getting compromised. I will withstand any amount of pressure to preserve ZEE’s intrinsic value and ensure that nothing impacts the returns being delivered to all the shareholders."
He goes on to add, "I acknowledge the stance that has been taken by Invesco, but communications pertaining to such proposals are always well-documented, and they speak to the contrary. I too have a lot of points to put across, but I firmly believe that there is a right time and place for it. Our lawyers will do the needful in the court of law, as deemed necessary."
Goenka then delves into the many questions he would like Invesco to answer- Why didn’t Invesco make its plans public earlier? Does good corporate governance only apply to corporates and not their institutional investors?
Goenka believes that this situation is not about one versus the other. Rather, the shareholders and management of a Company are two sides of the same coin. "It is all about increasing the value of that coin together, for the betterment of all the shareholders and the Company at large," he sums.
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