Invesco plans to sell 8% stake in ZEE at a price of Rs 2,200 crore

Invesco has 18% stake in Zee currently and they increased its stake in 2019 at a price of INR 390 (11% stake bought at INR 42bn)
Invesco recently softened their stance, despite the court judgment moving their favour, wherein they mentioned that they were in favour of the

Sony/ZEE merger and did not want to remove Punit Goenka as CEO

Probable reasons for Invesco selling stake, according to Karan Taurani, Senior VP, Research at Elara Capial, are:
- They may still not want Punit Goenka as CEO of the company

- They believe the merge deal with Sony may not go through due to regulatory hurdles

- They want to reduce exposure in the company and hence reducing stake by 8% towards 10%
Impact and Elara’s view
- In case of no corresponding buyer for the entire block being absorbed, We believe there will be immense pressure on the share price over near term , which will remain very volatile and in turn negatively impact investor confidence - high likelihood of negative impact on investor confidence

- This may also have a negative impact on Sony Group, which is on the final stages of merger with zee - low likelihood of Sony backing out

- On the flipside, if the entire block is absorbed by another financial investor, it may make the voting and other approval process easier for Zee - low likelihood scenario as the block is relatively large in size and the company is losely held among public and investors with a mere 4% promoter stake