Essel Group’s promoter Subhash Chandra has resigned as Chairman of Zee Entertainment Enterprises Limited in the light of the changes in shareholding, Zee informed Bombay Stock Exchange in its filing.
The board accepted his resignation and noted that this is in line with the requirements of Regulation 17(1B) of SEBI listing regulations, which inter alia mandates that the Chairperson of the Board shall not be related to the Managing Director or the Chief Executive Officer of the Company.
Last week, the Essel Group had 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.