Invesco Developing Markets Fund Releases Open Letter to Zee Entertainment Shareholders
Restates urgent need for strengthened independence on Zee’s Board given governance and leadership failures as well as prolonged underperformance
Welcomes all potential strategic alignments, but expresses concerns over any transaction terms which enrich Zee’s founding family at the expense of ordinary shareholders
Reaffirms resolve to pursue extraordinary general meeting (EGM) to hold the Board and management accountable and effect necessary change at Zee
Mumbai (STL.News) Invesco Developing Markets Fund, Zee Entertainment’s (“Zee” or the “Company”) largest shareholder with an ownership interest of nearly 18%, today released an open letter to Zee shareholders, outlining the urgent need for independent perspectives on the Company’s Board of Directors (the “Board”).
“As long-term investors and stewards of investor capital, the Invesco Developing Markets team takes its fiduciary duty very seriously and is committed to acting in the best interest of clients and shareholders,” said Justin Leverenz, Chief Investment Officer, Developing Markets Equities. “We have been a significant shareholder in Zee Entertainment Enterprises for over a decade. The depth of talent within Zee gives us the conviction that if the company was properly managed, it has the potential for tremendous growth and success.
“We are disappointed that the leadership of Zee has resorted to a reckless public relations campaign in response to the overwhelming demand from shareholders for leadership changes at Zee,” Mr. Leverenz added. “These actions and rhetoric are aimed at avoiding true accountability for the governance lapses and shareholder value destruction that the current leadership and Board have presided over. We are calling on Zee shareholders to join us in asking why the founding family, which holds under 4% of the company’s shares, should benefit at the expense of the investors who hold the remaining 96%.”
NOTE: This is not the complete release. CLICK to view PDF version of the complete release. Please review all information before making a financial related decision.