Subhash Chandra resigns as chairman of Zee Entertainment
MUMBAI: Subhash Chandra, founder of Zee Entertainment Enterprises and pioneer of India’s private satellite television, has stepped down from the chairman’s position, four days after his stake in the company fell to 5%.
“In light of the changes in shareholding, Chandra has expressed his intention to resign as chairman of the board with immediate effect,” the company said in a regulatory filing. He also expressed his desire to step aside as a board member, but the rest of the board requested him to continue as a non-executive director, the company said.
Chandra’s oldest son, Punit Goenka, 44, also a director, continues to manage the show at Zee. Chandra has two seats on the Zee board as against three before he sold 16.5% in the company. Nominee director Subodh Kumar has also stepped down from the board of Zee. Chandra’s 5% holding makes Zee vulnerable to hostile takeovers in the future, said corporate governance experts. US-based investment manager Invesco Oppenheimer is the largest shareholder of Zee with a stake of 18.7%. Other large institutional investors are GIC (8.4%) and BlackRock (5%).
Zee on Monday reconstituted the board by inducting three new independent directors — R Gopalan, Surendra Singh and Aparajita Jain — who replaced two independent directors and one nominee director of the promoters. The reconstituted Zee board has six independent directors and two members from the promoters.
Though the company didn’t reveal who will be the new chairman, Monday’s board meet was chaired by Gopalan, former finance secretary. “The reconstitution of the board was to provide a strong signal to existing and new institutional investors who have reposed their faith by investing Rs 4,770 crore,” the company said.
[1][2][3][4][5]
from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/2OHX0rv
Chandra’s resignation brings an end to his role as the head of Zee, a company he founded in 1992 after economic liberalisation kicked off.
The 67-year-old, however, will continue to be on the board of Zee as a non-executive director. Last Thursday, Chandra sold 16.5% in Zee to a clutch of financial investors, raising Rs 4,770 crore to pare debt. As a result of the sharesale, his stake in Zee came down to 5%.
“In light of the changes in shareholding, Chandra has expressed his intention to resign as chairman of the board with immediate effect,” the company said in a regulatory filing. He also expressed his desire to step aside as a board member, but the rest of the board requested him to continue as a non-executive director, the company said.
Chandra’s oldest son, Punit Goenka, 44, also a director, continues to manage the show at Zee. Chandra has two seats on the Zee board as against three before he sold 16.5% in the company. Nominee director Subodh Kumar has also stepped down from the board of Zee. Chandra’s 5% holding makes Zee vulnerable to hostile takeovers in the future, said corporate governance experts. US-based investment manager Invesco Oppenheimer is the largest shareholder of Zee with a stake of 18.7%. Other large institutional investors are GIC (8.4%) and BlackRock (5%).
Zee on Monday reconstituted the board by inducting three new independent directors — R Gopalan, Surendra Singh and Aparajita Jain — who replaced two independent directors and one nominee director of the promoters. The reconstituted Zee board has six independent directors and two members from the promoters.
Though the company didn’t reveal who will be the new chairman, Monday’s board meet was chaired by Gopalan, former finance secretary. “The reconstitution of the board was to provide a strong signal to existing and new institutional investors who have reposed their faith by investing Rs 4,770 crore,” the company said.
[1][2][3][4][5]
References
- ^ Subhash Chandra (timesofindia.indiatimes.com)
- ^ Zee Entertainment Enterprises (timesofindia.indiatimes.com)
- ^ Invesco (timesofindia.indiatimes.com)
- ^ BlackRock (timesofindia.indiatimes.com)
- ^ Aparajita (timesofindia.indiatimes.com)
from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/2OHX0rv
Post a Comment