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Zee Entertainment shares soar nearly 40% as top investors seek CEO’s removal from board

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New Delhi: Shares of Zee Entertainment zoomed the maximum amount as 39.14% to Rs 260 apiece on Tuesday. This happened after top investors of the corporate sought the removal of its chief military officer Punit Goenka and two others– Manish Chokhani and Ashok Kurien– as directors of the firm.

Manish Chokhani and Ashok Kurien have resigned from the position of non-executive non-independent directors of the corporate with immediate effect.

Chokhani and Kurien have submitted their resignations before the extraordinary general meeting (EGM). the corporate told this to bourses during a regulatory filing.

In addition, Invesco Developing Markets Fund and OFI Global China Fund Llc, which own a combined 17.9 percent stake within the company, have also sought the appointment of six independent directors.

The investment firms have also sought the appointment of six of their own nominees on the board of the corporate – Surendra Singh Sirohi, Naina Krishna Murthy, Rohan Dhamija, Aruna Sharma, Srinivasa Rao Addepalli, and Gaurav Mehta.

The promoters, Subhash Chandra family owns only 4 percent of the corporate and had to sell their stake to pay off the debt worth Rs 13,000 crore taken by the promoter entities of ZEEL after defaulting.

The investment firms have also enclosed the relevant declarations and knowledge required from each of the proposed Independent Directors, which is required while seeking approval from the Ministry of data and Broadcasting (MIB) while making changes.

“Accordingly, we request that the corporate submit an application with the MIB seeking approval for the appointment of the Proposed Independent Directors at the earliest,” the investment firms said.

 

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