Invesco plans to sell 8% stake in ZEE at a price of ? 2,200Cr

Invesco has 18% stake in Zee currently and they increased its stake in 2019 at a price of INR 390 (11% stake bought at INR 42bn). Invesco recently softened their stance, despite the court judgment moving their favour, wherein they mentioned that they were in favour of the Sony/ZEE merger and did not want to remove Punit Goenka as CEO.<img src='\f0a5869afa721fb4398cd36ee1ed5e9c' class='content_image'>6 reasons for Invesco selling stake, according to Karan Taurani, Senior VP, Research at Elara Capial, are:They may still not want Punit Goenka as CEO of the companyThey believe the merge deal with Sony may not go through due to regulatory hurdlesThey want to reduce exposure in the company and hence reducing stake by 8% towards 10% ImpactIn case of no corresponding buyer for the entire block being absorbed, We believe there will be immense pressure on the share price over near term , which will remain very volatile and in turn negatively impact investor confidence - high likelihood of negative impact on investor confidenceThis may also have a negative impact on Sony Group, which is on the final stages of merger with zee - low likelihood of Sony backing outOn the flipside, if the entire block is absorbed by another financial investor, it may make the voting and other approval process easier for Zee - low likelihood scenario as the block is relatively large in size and the company is losely held among public and investors with a mere 4% promoter stake