Invesco Developing Markets Fund, which has a 10.14 per cent stake in Zee Entertainment, will sell half of its stake in the company in a block deal on Tuesday, sources told Business Standard. Invesco holds the stake Zee Entertainment through OFI Global China Fund. 52.93 million shares amounting to 5.51 per cent stake will be offloaded at a price range of Rs 250-Rs 263.7 per share.
This is a discount of 5.32 per cent (at the lower end of the price band) to Monday’s closing price of Rs 263.30 per share on the BSE. At the lower end of the price band, the share sale will fetch Rs 1,323 crore, while the upper end will fetch Rs 1,395 crore in proceeds.
A mail sent to Kotak Securities, which is the sole broker for the block deal, elicited no response till the time of going to press. A query to Invesco wasn’t immediately answered.
This block deal will be the second one in seven months by Invesco after it offloaded 7.8 per cent stake in April for Rs 2,092 crore. The block deal in April had come after Invesco withdrew its demand for an extra-ordinary general meeting, which it was pursuing since September 2021. It was doing this to reconstitute the board citing corporate governance issues.
However, in a U-turn in March, Invesco said that it was not seeking to add six independent directors to Zee’s board. Instead, it would support the proposed merger of Zee with Sony.