After ZEE Entertainment and Dish TV, the Subhash Chandra family may also face the ire of shareholders in ZEE Learn and ZEE Media Corporation. According to sources, a general body meeting of these two companies is to be called soon.
Earlier, last week saw the activism of shareholders in ZEE Entertainment. Major shareholders of the company have openly demanded the removal of the promoters and the existing management headed by Puneet Goenka. Moreover, Dish TV also faced a similar situation earlier this month.
AGR dues: Government may bring a bill to give relief to telecom companies
ZEE Entertainment’s troubles can be gauged from the fact that it is a unique company, in which the promoters hold only 3.99 per cent stake, yet they completely control the entire company.
According to company insiders, investors want the promoters to exit both ZEE Learn and ZEE Media Corporation, even though Subhash Chandra’s Essel Group is the largest shareholder.
When asked about this, ZEE did not respond.
ITC shares: Stock reached 52-week high, more rise may come now
Promoters held 21.69% in ZEE Learn and 14.72% in ZEE Media Corporation as on June quarter. ZEE Media was earlier known as ZEE News. Promoters and their friendly investors together hold 40.68% in ZEE Learn and 43.99% in ZEE Media Corporation.
The move for new management at ZEE Learn is being taken by New York-based hedge fund Moon Capital Management. Moon Capital is the largest foreign shareholder in the company with a 6.43% stake since 2015.
Moon Capital Management had asked Chandra to leave ZEE Learn in February 2020 citing mounting debt, lapses in corporate governance and lack of a clear growth strategy. It also expressed its desire to appoint Shayan Chatterzee, one of the company’s managing directors, as an independent direct.
Puranik Builders IPO: This real estate company submitted documents with SEBI for the third time
ZEE Learn is conducting schools from KZEE to class XII under Mount Litera ZEE School. It has over 120 schools in 110 cities. It also runs KidZEE, Asia’s largest pre-school chain. Their number is more than 1,900 in India and neighbouring countries.
Another group company that is facing investor wrath is ZEE Media Corporation. It is also accused of lapses in corporate governance. In addition, other management-related problems have been raised.
According to sources, the issue related to corporate governance is between the two Essel Group companies.
Advent Internation IPO: This hair care company is bringing a $1 billion IPO
According to sources, investors are of the view that Chandra’s exit will help ZEE Learn to build an efficient management team and transparently engage with potential bidders who are interested in the company.
Let us tell you that recently the investors of ZEE Entertainment and Dish TV had asked two independent directors to resign due to lapses in corporate governance. Following this and just a day before AZEEM last week, the re-appointed directors – Manish Chokhani and Ashok Kurian – resigned.
Sources said that obviously the same demands would be made in the case of ZEE Media and ZEE Learn. Promoters are worried about this.