The Essel Group has announced that the company is planning to sell 16.5% stake in Zee Entertainment Enterprises Limited 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 ~2.3% stake in ZEEL to OFI Global China Fund, LLC and/or 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% of Zeel.
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 media/ non-media assets and remains confident to complete the same.
“I am overwhelmed by the positive response received from our investors. Glad to share that the book was over-subscribed by approximately 3 times. I am grateful to our lenders and investors for their trust and support. I remain committed to elevate ZEE to a global media & entertainment powerhouse,” said Punit Goenka, MD & CEO, Zeel.
It may be recalled that the Essel Group had sold 11% stake in Zeel in July this year to Invesco Oppenheimer Developing Markets Fund, for a total consideration value of up to Rs 4,224 crore.