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Invesco Developing Markets Fund assisted Reliance Industries in arranging discussions directly between RIL representatives and Punit Goenka, member of the founder family and Managing Director of Zee, in February-March this year, RIL said.
RIL said it made a broad proposal for merger of its media properties with Zee at fair valuations of Zee and all RIL properties.
“The proposal included continuation of Goenka as Managing Director and issue of ESOPs to management, including Goenka. However, differences arose between Goenka and Invesco with respect to a requirement of the founding family for increasing their stake by subscribing to preferential warrants,” RIL said.
“The investors seemed to be of the view that the founders could always increase their stake through market purchases. At Reliance, we respect all founders and have never resorted to any hostile transactions. So, we did not proceed further,” RIL said.
“The proposal sought to harness the strengths of all the merging entities and would have helped to create substantial value for all, including the shareholders of Zee,” it said.
