Upset with ZEEL-Sony merger, Invesco faces tough questions over change in board proposal

Last week, the entire market welcomed the mega merger between ZEE Entertainment Enterprises Limited (ZEEL) and Sony Pictures Networks India (SPNI) with open arms but Invesco is still hellbent on its proposal to change the Board of ZEEL.   

Invesco has neither any solid proposal nor any work-related experience of entertainment industry. The big question here is - What's the intention behind Invesco's move?   

ZEEL board has who's who of entertainment industry, however, Invesco has no big name having any big experience in media and entertainment sector. Now, questions are cropping up due to the said proposal of Invesco.  

Let's have a look at proposed Board by Invesco and the experience that proposed members have:-  

Surendra Singh Sirohi  

- No prior experience in media   

- Limited experience in listed company; as of now in HFCL board  

- 3 years experience in Bharat Electronics Board  

- Is telecom sector experience enough for ZEEL?  

Aruna Sharma  

- Was independent director in Jindal Steel for 2 years   

- No reappointment after first tenure   

- As of now, independent director in Welspun enterprises  

- Controversy erupted on presentation of Commonwealth Games while holding DG Doordarshan post  

- Private company probed production, presentation  

- Shunglu Committee alleged that she benefitted private firms   

- Rs 135 cr loss to government alleged  

- IPC, PCA action was proposed  

- ED probed FEMA violation; parent cadre was sent  

Naina Krishnamurthy  

- Limited experience with respect to listed company  

-No experience of media and entertainment  

Rohan Dhamija   

- No experience of board in any listed company  

-By and large, holds experience in Analysys Mason as Managing Partner  

- No experience of media and entertainment  

Srinivasa Rao Addepalli  

- No major experience except Tata Group; board member nowhere  

-Tata is an investor in his edutech startup Global Gyan  

- Ratan Tata is angel investor in Global Gyan  

-No clarity so far on investment amount by Ratan Tata  

-Most of the projects held by Global Gyan are from Tata Group  

-Many staff members of Tata are in advisory role and faculty member role  

Gaurav Mehta  

- Associated with Raine Advisors India Pvt. Ltd  

-No experience in listed company  

- He is on board of company, which is registered as broker-dealer in US SEC  

Zee Business raises some tough questions for Invesco:-  

- Where is the media, industry, digital and tech experience of Invesco proposed board members?  

- Where is the experience of merger, acquisitions and approval?  

- How did Invesco get right to grab 6 seats in Board without having 18% share?   

- Why is Invesco forgetting that it is a financial investor, not strategic investor?  

- If Invesco has no solid plan, then why it wants to break the mega merger deal of ZEEL-Sony?  

- Do foreign investors like Invesco want to destabilise an established Indian brand?