Invesco/Zee, Aussie VC funding – Breakingviews

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– Invesco/Zee

– Venture capital funding

Tuning out. After winning an Indian court battle to uphold its right to call a shareholder vote at broadcaster Zee Entertainment, Invesco has decided against wielding its 18% stake to hold a ballot. Originally, the U.S. fund manager wanted to oust boss Punit Goenka. That’s now redundant after Zee agreed to a $7 billion merger with Sony Pictures Networks India that will rejig the board and help to check the influence of the media tycoon. Invesco did well to get this far. Stepping back increases the chance the Sony deal to create a media powerhouse will get completed.

A first-time activist, Invesco’s initial intervention was clumsy, coming only after its push for an alternative union with part of Mukesh Ambani’s Reliance Industries failed. Zee rejected the fund’s demands, taking the standoff into court for an important wider test of shareholder rights. A 17% jump in Zee shares on Thursday underscores relief all around that Invesco is ready to stand down; overall the stock is 63% above its undisturbed price from September. A solid result for Indian corporate governance, and not bad for Invesco. (By Una Galani)

Ivory flowers. Australia’s decision to keep its borders sealed for much of the first two years of the pandemic warped parts of its economy. It also led to a funding crisis for venture capital firm Uniseed, whose owners include the universities of Melbourne, Queensland, Sydney and New South Wales, as well as a government agency.

First, the universities’ fee pools suffered as border restrictions meant foreign students could not physically enrol. Second, applicants for the country’s separate so-called Significant Investor visa scheme dried up. To get one of these, hopefuls invest up to A$5 million ($3.7 million), and Uniseed is often a beneficiary as one of the companies folks can pump money into.

Cue UniSuper. It’s one of the country’s largest pension funds, catering especially to university employees. Its A$75 million investment on Thursday into Uniseed will give it access to start-up companies’ later funding rounds, where it can put significantly larger amounts of capital to work as it, like peers, seeks to diversify its assets. That’s making the most of crisis. (By Antony Currie)