Invesco Oppenheimer, the US-based financial investor which has entered into a share purchase agreement with the promoters of Zee Entertainment Enterprises (ZEE), said Tuesday that the fund has full confidence in the company.
Justin Leverenz, Portfolio Manager of the Invesco Oppenheimer Developing Markets Fund, said that their analysis gives them “confidence that the underlying businesses at ZEE remain structurally sound, and offer an opportunity for meaningful growth over the years to come.”
The statement from Invesco Oppenheimer has come after the stock price of ZEE witnessed continuous drop.
The fund had signed a deal on July 31st with ZEE promoters to acquire an additional 11% stake in the company for a consideration of around Rs 4,224 crore (Rs 400 per share), giving a premium of over 10%. However, ZEE’s stock continued to decline and closed at Rs 327.40 apiece on Tuesday.
Invesco Oppenheimer Developing Markets Fund has been an investor in ZEE for well over a decade and already own 7.7% stake in the company.
“Essentially, we are financial investors with an established track record for bottom-up, fundamental investing, and a history of investing in India since the Fund’s inception in late 1996,” Leverenz said.
He added that the fund believes in (ZEE’s) management’s ability to achieve growth and deliver good financial returns to the shareholders.
“We are working closely with the Essel Group to complete all the conditions prescribed in the share purchase agreement dated July 31st for the purchase of an 11% stake in ZEE (including obtaining the necessary approvals), and are targeting to close the deal as soon as practicably possible,” Leverenz added.
Source: Economic Times