The Heat Is On
Last week we wrote about the interesting developments at Zee Entertainment Limited (ZEL) and Dish TV after large foreign investors called for the sacking of the CEO and 2 directors.
Moneycontrol now reports that something similar might go down for other companies controlled by Subhash Chandra and family as well, namely Zee Learn Limited (ZLL) and Zee Media Corporation (ZMC).
Apparently, foreign investors in these companies want the promoters to give up control of running the company.
This was understandable in the case of ZEL, where promoter shareholding was less than 4%, but they were still running the business (The CEO Punit Goenka is founder Subhash Chandra's son).
But with these other 2 companies, ZLL and ZMC, it's different because the promoters + investors who are friendly with them own over 40% each in the 2 companies, whereas foreign investors combined own ~20%.
Btw, if you're still wondering, Zee Learn is an education firm with a large chain of KG to class XII schools under Mount Litera Zee School and also runs Asia's largest pre-school chain called Kidzee.
Zee Media is the company that runs Zee News. They have 14 channels in 6 languages and claim to reach 365 million viewers. They also run dnaindia.com.
The move for new management at ZLL is being driven by a NY-based Hedge Fund called Moon Capital Management. They own a little over 6% of the company since 2015 and are not happy with the way the company is being run.
Citing increasing debt, poor corporate governance and no clear growth strategy, Moon Capital wants professionals and not family members in charge of running the business. They even wanted a board seat back in 2020 but did not get it.
Now with the extraordinary general body meeting of the group coming up soon, investors are once again ramping up the pressure. We'll let you know what happens✌