Zee Entertainment tanks 5% after Bombay HC allows NCLT to hear Invesco appeal

NEW DELHI: Shares of Zee Entertainment Enterprises slumped 5 per cent after a division bench of the Bombay High Court vacated its earlier order restraining the National Company Law Tribunal (NCLT) to hear an appeal by Invesco.

As per the latest order, Zee Entertainment Enterprises can approach the Supreme Court against the High Court order within three weeks. If the company fails to do so, the Mumbai bench of NCLT can resume the hearing in the matter.

The tribunal had adjourned its hearing in the wake of appeals filed in the High Court in November last year. Invesco had sought a direction to Zee Entertainment Enterprises for convening an extraordinary general meeting (EGM) of shareholders.

Invesco is the largest individual shareholder in the company. In its call for the EGM, the shareholder had sought the removal of ZEE managing director and CEO Punit Goenka and reconstitution of the board.

The latest High Court order adds another chapter to the Zee-Invesco saga. This comes at a time when Sony and Zee Entertainment are in the process of merging their businesses. In case, NCLT favours Invesco, the merger may get delayed or cancelled if the shareholders vote against it.