LIC Undecided On ZEE-Sony Merger

As per some media reports, the Life Insurance Corporation of India (LIC), which holds 4.89% stakes in Zee Entertainment Enterprises Limited (ZEEL), has not decided its stand on the Zee-Sony merger. Which can be a sign that it is backing the merger.

Any counteroffer for Zee will be considered by the firm, but only after the Extraordinary General Meeting (EGM). After evaluating all of the proposals, the choice will be made to select the best policy for its shareholders and policyholders.

An LIC insider had informed a media company that the primary objective of the company is to provide value to its policyholders. Though corporate governance is vital, LIC is aware of the current situation and condition at Zee Entertainment as a stakeholder. The LIC believes that the Sony acquisition would benefit all shareholders, as seen by the stock's performance, insisted the insider in the report.

For a successful merger, Zee would need a minimum of 75% of its shareholders to approve. Since LIC owns nearly 5% of Zee's stock, its choice would influence the votes of the company's public shareholders. 

Invesco, along with its subsidiary OFI Global China Fund, holds around 17.88 per cent stakes in ZEEL. Last month, both the stakeholders had demanded to hold an EGM to expel Punit Goenka, who was chosen to remain CEO and MD of ZEE following the merger. ZEE has challenged the demand National Company law tribunal (NCLT).

Zee-Sony being two of the most powerful entities in the media sector, the merger has significant importance. Since the deal was announced, Zee's stock price has risen.