We will not let a foreign company take over ZEEL: Subhash Chandra

Breaking his silence on the ZEEL vs Invesco, Essel Group Chairman Subhash Chandra has lambasted Invesco for trying to take over the company in a clandestine manner. He, however, stated that the promoters don't want any fracas with any shareholder. Chandra also said that the Zee-Sony merger deal is in the larger interest of the company and its shareholders.

“I know you (the viewers) have got my back. I assure you, if you are with us, we will not let a foreign company take over. This company is not a personal property of anyone. It belongs to the people," he told Zee News in an interview.

While stating that the ZEEL Board is capable of handling the issue on its own, Chandra alleged that there is definitely someone in India who is backing Invesco. “I do not want to make a guess on that," he said.

He also said that Invesco should resolve the matter peacefully and that he doesn't want any fracas with the investor. He added that if Invesco wants to fight, then he will fight back. “I will fight back not because I have some financial gains, but I’ll feel satisfied that I am honest with the 90 crore viewers of ZEE.”

On the Zee-Sony deal, Chandra said that though Sony is also a foreign company (Japanese), they have offered a good deal. “They have agreed to let Punit Goenka lead for the next five years. Their intent is good," he noted.

He also advised Invesco not to take over ZEEL through illegal means. “Invesco deals in dollars, we deal in rupees. They have money and power. This is a clear cut case of company takeover in a clandestine manner, which is not legal. Yes, Invesco is an 18% shareholder, but not owner. The law of the land should not allow this to happen," he stated.

Chandra also alleged that someone in Invesco is indulging in wrong practice. “This is not the same Invesco which it once was. Maybe there is a Chinese connection to it. Experts are saying what they are doing is illegal. They could be indulging in insider trading. They (Invesco) are trying to take control of the company by exploiting legal loopholes.”

He also averred that Invesco is not the owner of ZEEL as there are 2.5 lakh other shareholders who are the real owners of the company. “90 crore Indian viewers are the real owners of the group. A mammoth organization like ZEEL cannot be run by Invesco.”

The Zee TV founder also said that threats like these from a foreign entity have come before as well. His message to Invesco is that it should behave like a shareholder, not like an owner.

Reminiscing the old days, Chandra said that Zee was launched at a time when there was only Doordarshan in India. "They had their limitations, being the public broadcasters. So there was a gap to be filled, which ZEE did."

He also said that a channel like Zee TV can not be created by spending even Rs 10 lakh crore. "There are several programmes running on OTT. Families can’t watch them together. Only Zee network provides content which everyone can watch with their families," Chandra said.

Getting emotional, the Essel Group Chairman said that losing the controlling stake in the company is part of destiny. "It was destiny. It was just meant to be. And that’s how Zee happened. People gave Zee meaning. Even I could not repeat the feat today, even if I wanted to."

Invesco is seeking to oust ZEEL MD and CEO Punit Goenka from the company, while the latter is resisting it tooth and nail. The two parties are loggerheads over holding an Extraordinary General Meeting (EGM).

ZEEL board has refused Invesco's requisition for an EGM even as Invesco moved the National Company Law Tribunal to force the current board to call an EGM. ZEEL has moved the Bombay High Court against Invesco's demand for EGM.