The Essel Group is planning to sell a 16.5% stake in Zee Entertainment Enterprises Limited (“ZEEL“) to financial investors. The Group seeks to sell up to 16.5% stake in ZEEL to financial investors, in order to repay loan obligations to certain lenders of the Group for whose benefit such shares are currently encumbered (and who have consented to such share sale by the Group).
Out of the aforesaid, the Group seeks to sell a 2.3% stake in ZEEL to OFI Global China Fund, LLC and lor its affiliates. Pursuant to the aforementioned transactions, the post-transaction overall holdings of the Group in ZEEL will be 5%, out of which encumbered holdings of the Group will reduce to 1.1% ofZEEL.
This development reaffirms the Group’s positive progress on its overall asset divestment approach, undertaken to generate adequate liquidity for the repayment process. The Group is also working actively on further divestments including its medial non-media assets and remains confident to complete the same.
ZEELs shares rallied after the announcement was made. At 11 AM Zee’s stock was trading at Rs 325.90 up by Rs 18.75 or 6.1% from the previous close of 307.15.