Zee Entertainment surges 6% after 53 mn shares change hands via block deal

Shares of Zee Entertainment Enterprises (ZEE) jumped 6% to 280.05 rupees in intraday trading on Tuesday, after nearly 53 million shares of the company changed hands via block deals at the National Stock Exchange (NSE).

About 52.93 million shares, representing 5.51% of ZEE’s share capital, worth Rs 1,396 crore, changed hands on the exchange at a price of Rs 263.7 per share, according to the data. However, the names of the buyers and sellers could not immediately be determined.

That said, a Trade standard report suggested that Invesco Developing Markets Fund, which holds a 10.14% stake in ZEE, was looking to sell half of its stake in the company in a block deal on Tuesday. Invesco owns ZEE’s stake through OFI Global China Fund.

“This block deal will be the second in seven months by Invesco after selling 7.8% of its stake in April for Rs 2,092 crore. an extraordinary general meeting, which he had been pursuing since September 2021. He was doing so to reconstitute the board of directors citing corporate governance issues,” the report said. READ HERE

Earlier this month, the Competition Commission of India (ICC) granted conditional approval to ZEE’s proposed merger with Sony Pictures Networks (SPN) India. Last week, the company obtained shareholder approval for the merger.

As of 09:28, ZEEL was trading up 3.5% at Rs 272.85, after hitting an intraday low of Rs 271.25 on the NSE. In comparison, the Nifty 50 rose 0.96% to 17,477 points.

Over the past three months, the stock has outperformed the market by jumping almost 20%, against an 8% rise in the benchmark. It had hit a 52-week low at Rs 200.50 on June 20, 2022. Today Post Times