“We had made a broad proposal to merge our media properties with Zee to fair valuations of Zee and all of our properties. The valuations of Zee and our properties have been established on the basis of the same parameters, ”the RIL statement read, noting that Invesco helped Reliance organize discussions directly between its representatives and Punit Goenka, CEO of Zee.
“The proposal was intended to harness the strengths of all the merging entities and would have helped create substantial value for all, including Zee shareholders,” the RIL statement added.
“Reliance always strives to continue the existing management of the issuing companies and reward them for their performance. As a result, the proposal provided for the retention of Mr. Goenka as Managing Director and the issuance of ESOPs to management, including Mr. Goenka, “the statement read.
“However, disputes arose between Mr. Goenka and Invesco regarding a requirement by the founding family to increase its stake by subscribing to preferential warrants. Investors seemed to be of the opinion that the founders could always increase their stake through purchases in the market. At Reliance, we respect all of the founders and have never resorted to hostile transactions. So we did not continue, ”the statement said.
On Tuesday, Punit Goenka told Zee’s board of directors that Invesco had approached him in February with a plan to merge with “a large Indian group”, not to mention RIL.
Goenka said he was rejecting the deal because it would result in a loss for Zee shareholders. This morning, Invesco refuted Goenka’s claims, saying it was just buying time to delay the extraordinary general meeting, which Invesco demanded.
(Edited by : Santosh nair)
First publication: STI