India’s Zee Leisure surges after high traders name to take away administrators

Punit Goenka, CEO and managing director of Zee Leisure Enterprises, attends a information convention earlier than the Zee Cine Awards in Macau January 21, 2012. REUTERS/Bobby Yip

BENGALURU, Sept 14 (Reuters) – Shares of India’s Zee Leisure Enterprises Ltd (ZEE.NS) soared 40% on Tuesday in a report each day acquire after high shareholders known as for a administration reshuffle, together with the exit of its chief government officer from the board.

Shareholders Invesco Growing Markets Fund and OFI World China Fund, which collectively maintain a 17.88% stake in Zee, in a letter requested for the elimination of CEO Punit Goenka and two others as administrators, Zee mentioned late on Monday.

The traders additionally requested for the appointment of a number of unbiased administrators to the media and leisure firm.

Zee, which has a presence in tv broadcasting and digital media with manufacturers resembling Zee TV, mentioned it was analyzing the letter. Reuters couldn’t instantly attain the investor funds for remark.

Individually, Zee mentioned on Monday that administrators Manish Chokhani and Ashok Kurien, who the traders wished to take away, had resigned.

The event comes days after proxy advisory agency Institutional Investor Advisory Providers (IIAS) raised recent company governance issues at Zee Leisure and requested shareholders to vote in opposition to reappointing Chokhani and Kurien as administrators.

Amongst different issues, IIAS alleged Kurien and Chokhani had been accountable for a 46% improve in Goenka’s remuneration for fiscal 12 months 2021, increased than what shareholders permitted within the 2020 AGM.

Zee didn’t instantly reply to a request for remark.

“This is usually a optimistic transfer for the corporate as appointing new administrators may enhance its company governance and oversight of the enterprise,” Likhita Chepa, senior analysis analyst at CapitalVia World Analysis, mentioned.

Zee is about to carry its annual shareholder assembly later within the day.

Shares of different group firms resembling Zee Media (ZEEN.NS), Zee Study (ZEEE.NS) and Dish TV India (DSTV.NS) jumped between 5% and 19%, following the funds’ name to take away the Zee Leisure administrators.

Zee Leisure shares recovered its losses for the 12 months following Tuesday’s good points.

Reporting by Rama Venkat in Bengaluru; Enhancing by Shounak Dasgupta

Our Requirements: The Thomson Reuters Belief Ideas.

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