As reported earlier, Invesco Oppenheimer Developing Markets Fund, in July, had agreed to buy up to an 11% stake in ZEEL from its promoters, for a total consideration value of up to Rs 4,224 crore.
Justin Leverenz, Portfolio Manager of the Invesco Oppenheimer Developing Markets Fund, commented: “The Invesco Oppenheimer Developing Markets Fund (the Fund), under the guidance of Portfolio Manager Justin Leverenz, has been an investor in Zee Entertainment Enterprises Ltd. (Zee) for well over a decade. Our analysis gives us confidence that the underlying businesses at Zee remain structurally sound, and offer an opportunity for meaningful growth over the years to come.”
He added: “Furthermore, we believe in management’s ability to achieve growth and deliver good financial returns to the shareholders of Zee. We are working closely with the Essel Group to complete all the conditions prescribed in the share purchase agreement dated 31 July 2019 for the purchase of an 11% stake in Zee (including obtaining the necessary approvals), and are targeting to close the deal as soon as practicably possible.”
As per deal fixed in July, Invesco has agreed to pay Rs 400 a share for ZEEL which is a 10.7% premium to ZEEL’s Wednesday closing price of Rs 361.45 on BSE. Also, Invesco Oppenheimer is an existing investor in ZEEL with 7.74% stake. The acquisition of an additional 11% stake will take its shareholding in the company to 18.74%. Consequently, the promoter group’s shareholding will fall to 24.79% from the current 35.79%.