A US-based hedge fund and investor in Subhash Chandra’s Zee Learn has urged the mogul to sell his stake in the company to make way for a 'change in management', Bloomberg reported.
Moon Capital Management has asked for a seat on the company’s board citing concerns over group debt, corporate governance and strategy, a source told the publication. In a letter dated January 10, it called for Shayon Chatterjee, be appointed an independent director at Zee Learn.
Chatterjee is Managing Director at Moon Capital. The report noted that such developments are rare in India, where unlike the US shareholder campaigns against management teams judged to be underperforming 'lack firepower'.
The source added that Chandra’s exit would allow for the building of “an efficient management team and transparently engage with numerous potential bidders.”
Moneycontrol could not independently verify the report.
Chandra and his Essel Group hold a controlling stake (around 57 percent, most of which is pledged) in Zee Learn.
The New York-based hedge fund manages over $2 billion in long-short equity strategies and has been a stakeholder since 2015. It is the largest unaffiliated stockholder in Zee Learn, the report added.
Chandra’s Essel Group is trying to recoup debt by selling assets. The group in 2019 sold a sizeable chunk of Zee Entertainment Enterprises (ZEE) and is likely to sell some road projects, the report added.
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