Reliance Says Differences Between Invesco And Punit Goenka Killed Zee Deal

Hours after a proposed merger between Reliance Industries Ltd.’s media entities with Zee Entertainment Enterprises Ltd. was revealed, the Mukesh Ambani-controlled group said the transaction was derailed by differences between the broadcaster’s Managing Director Punit Goenka and its single-largest shareholder Invesco Developing Markets Fund.

On Wednesday morning, Invesco Developing Markets Fund issued a statement saying it was facilitating the transaction between Reliance entities and Zee. That came in response to Goenka’s letter to the Zee board, disclosed on Oct. 12, saying that Invesco had approached him with a deal to merge Zee with a large Indian group, without naming the entity.

Invesco, along with affiliate OFI Global China Fund, owns 17.88% of Zee Entertainment. It's currently locked in a legal dispute to oust Goenka and appoint six new independent directors.