US investment firm Invesco said on Thursday it would abandon efforts to shake up top management at Zee Entertainment, citing a planned merger between the Indian TV network and the local unit of Japan’s Sony Group.
Zee’s shares rose 18% higher on the news.
Invesco, which owns nearly 18% of Zee, claims corporate governance issues have sought the eviction of Zee’s CEO and the appointment of new independent board members. Zee denied any wrongdoing.
Although Invesco recently obtained an Indian court order to convene a meeting of Zee shareholders, he said he had decided not to pursue the issue.
“Following the completion of the merger, the board of directors of the newly combined company will be substantially restructured, which will achieve our goal of strengthening board oversight of the company,” Invesco said in a statement.
Zee welcomed Invesco’s decision, saying the Sony merger, announced last September, was in the “best interests of all stakeholders.”
However, Invesco has said it will continue to monitor the progress of the proposed merger and if it fails, it could seek a Zee shareholder meeting again.
Sony did not immediately respond to a request for comment from Reuters.