Invesco Oppenheimer-owned OFI Global China Fund LLC has sold its entire stake in Zee Entertainment Enterprises (ZEEL), a leading Indian media conglomerate, through open market transactions.

The investment management company sold its entire 5.11% stake in ZEEL for Rs 1,004 crore, with over 4.91 crore shares exchanging hands at an average price of Rs 204.50 per share. Goldman Sachs Singapore Pte ODI, Morgan Stanley Asia Singapore Pte, and Segantii India Mauritius were among the companies that acquired the shares.

Oppenheimer had been a financial investor in ZEEL for the past two decades and had acquired a significant stake in ZEEL in 2019 when the company’s promoters sought to sell a stake to repay debt.

In September 2021, ZEEL announced a merger with Sony, which was met with opposition from Invesco Oppenheimer. The investment management company sought an extraordinary general meeting (EGM) to remove ZEEL’s MD & CEO, Punit Goenka and two other independent directors and appoint six of its members to the board. However, Invesco Oppenheimer withdrew its request for an EGM last month. It also said that the merger in its current form has plenty of potential for ZEEL’s shareholders. India’s competition regulator approved the merger in October with conditions, while shareholders also approved the same last week.

The news of Invesco Oppenheimer’s complete exit caused ZEEL’s shares to open 1% higher at Rs 206. The shares rose 1.7% to Rs 207.25 in early trade. The stock traded 17% higher than its 52-week low of Rs 176.60 on February 2, 2023, while it was down 28% against its 52-week high of Rs 286.90 on October 6, 2022.

ZEEL has been facing financial troubles for the past few years, with several insolvency proceedings initiated against it. Last month, the company entered into a settlement agreement with IndusInd Bank, a financial creditor that had filed an insolvency plea against ZEEL in a case about payment disputes. As part of the settlement agreement, IndusInd Bank withdrew its objection to ZEEL’s merger with a local unit of Japan’s Sony, which had been stuck due to the initiation of insolvency proceedings against the Indian media company.

In December 2022, private lender IDBI Bank moved the National Company Law Tribunal (NCLT) seeking initiation of insolvency proceedings against ZEEL, claiming Rs 149.60 crore of default under a debt service reserve agreement entered into by the bank and the company for the financial facility availed by SITI Networks. In April 2022, Housing Development Finance Corporation Ltd (HDFC) also filed an insolvency application against SITI Networks Ltd for alleged default of Rs 296 crore.