DNA Exclusive: Invesco is trying to take over ZEEL in clandestine manner, says Subhash Chandra

Giving a piece of advice to Invesco, Dr Chandra said, “They should behave like a shareholder, not like its owner.’’ He added that “a mammoth organization like ZEEL cannot be run by Invesco. It is the duty of the board members to expose illegal acquisition.”

NEW DELHI: Dr Subhash Chandra, Zee Group founder, on Wednesday questioned Zee Entertainment Enterprises Limited’s shareholder Invesco’s malicious intent and alleged that it is trying to acquire the company through illegal means. He said that Invesco should resolve the matter peacefully and that he doesn't want any fracas with the US-based investor. 

Dr Chandra also stated that his son Punit Goenka, who will continue as the Managing Director (MD) and Chief Executive Officer (CEO) of ZEEL and the newly merged entity, can be removed if the board members or the shareholders desire so. 

In an exclusive interview with Zee News Editor-in-Chief Sudhir Chaudhary’s prime time show DNA, founder of Zee Group Dr Subhash Chandra said, “Invesco is not the real owner of the ZEEL. They are just one of the investors.” Dr Chandra further alleged that Invesco is trying to take control of the company in a clandestine manner by exploiting legal loopholes. 

“Someone in Invesco is indulging in wrong practices. This is not the same Invesco that it was once. Maybe there is some Chinese connection to it. I have spoken to legal experts and they have told me that what they (Invesco) are doing is illegal. They could be indulging in insider trading also,’’ he said.

Dr Chandra reiterated that “I am not the owner, but 2.5 lakh share-holders are the real owner of the ZEEL. 90 crore Indian viewers are the real owners of the ZEEL today."

Throughout the show, Dr Subhash Chandra posed some very tough questions to Invesco, which is believed to be acting at someone's behest and over its alleged China connection.

Giving a piece of advice to Invesco, Dr Chandra said, “They should behave like a shareholder, not like its owner.’’ He added that “a mammoth organization like ZEEL cannot be run by Invesco. It is the duty of the board members to expose the illegal acquisition.”

Alleging that Invesco and its promoters are trying to create false impressions and narratives about the ZEEL, Dr Chandra said, “They deal in Dollars, we deal in Rupees. They have money and power. This is a clear case of a hostile takeover. The law of the land should not allow this to happen.” “You may be an 18% shareholder but you are not the real owner. Don’t behave like one,” he said.

It is the duty of the ZEEL board members to expose this illegal acquisition, he said. “I don’t think the takeover will ever happen. If you want to take over, offer 75% to the shareholders. We will welcome that,” he said in the prime time show DNA. “But don’t try to do it by illegal means. It will not happen. The law of this country will not let it happen,’’ he added.

Dr Chandra further said that there are several programmes running on OTT platforms today. “Families can’t sit and watch them together. Only Zee Network provides the content which everyone can sit with their families and watch comfortably,” he said. “If they (Invesco) want a fight, we will give them one. I trust the people will not let Zee down,” Dr Chandra said.

At one point in time, Dr Subhash Chandra got emotional recalling the journey of Zee. Asked what he feels looking back at the long history of the channel, Chandra said it was just meant to be and that the feat could not be repeated by anyone including himself. “It was destiny. It was just meant to be. And that’s how Zee happened. I could not repeat the feat today, even if I wanted to,” he said.

Dr Chandra admitted that “we have made mistakes along the way. And I have paid for it. I was even shown black badges, offered a garland of shoes. But I have always welcomed criticism positively.”

"This is for the first time that I have appeared before the public. Zee Board is capable of handling this issue on its own. The regulatory authorities should take note. This should not just be about one EGM. Should the takeover be allowed?" he questioned. "Even for appointing a Director, permission from the I&B Ministry is needed. So clearly, there is definitely someone in India who is backing Invesco. I do not want to make a guess on that," he said.

Making an emotional appeal to the people of India, Dr Chandra said, "I know you (people) have got my back. I assure you, if you are with us, we will not let a foreign company take over this company as it is not the personal property of anyone. It belongs to the people of this country.''

For the past few days, especially after the mega-merger announcement between ZEEL and Sony Pictures Networks India (SPNI), some media houses have been publishing baseless and hollow reports to fight a losing battle against ZEEL, and especially against Punit Goenka, who will continue as the Managing Director (MD) and Chief Executive Officer (CEO) of the company.

Some media reports have falsely cited Invesco's version to take on ZEEL MD & CEO Punit Goenka but in vain. The big interview came a day after Dr Subhash Chandra, the Founder, Zee Entertainment Enterprises Limited, himself came forward to clear the air on Invesco, ZEEL and Punit Goenka. The facts-laden statement by Dr Subhash Chandra left no room for any confusion and left publishers of false and baseless reports red-faced.

Commenting on the entire matter, Dr Subhash Chandra had said, "No matter who runs ZEEL but the company, to which I've and many of my friends have given their blood and sweat for the past 30 years, should be in the hands of someone under whose leadership the organisation should prosper and shareholders should be benefitted since I don't have any profit or loss associated with this."

Also, taking on the media reports, Dr Chandra added, "I wanted to give an interview to my friends at CNBC and MoneyControl but they won't take it neither run it because it seems although he is a friend of mine but has a vested interest in the entire matter; I don't know whatever it is but I wish God give him good sense and wisdom."

Stating about the Invesco, Dr Chandra said, "Invesco is a good investor but in this case of ZEEL they are not revealing that what they will do after taking ZEEL, and in whose hands management will go?"

"You want to remove Punit Goenka? Okay, fine but what next? Have you done any deal with someone? The 6 directors given by them - what's their background? Do they have any relation with any particular company that wants to take over? Invesco should come out transparently and openly, and let the shareholders decide - whether they want to take the deal of Invesco or want to go with Sony's deal," Dr Chandra said posing some really tough questions to Invesco.

On the regulators, Dr Chandra said, "The first and prime responsibility of the regulators is to protect the interest of the minority shareholders. So, they should ask Invesco that it should come out clear. And regulators should make sure that the minority shareholders have all the information at hand to decide whether to vote for Invesco or Sony's deal with ZEEL."