Essel Group Completes First Tranche Of Stake Sale In Zee Entertainment
Subhash Chandra-led Essel Group has announced completion of the first tranche of stake sale in Zee Entertainment Enterprises Ltd.'s, to Invesco Oppenheimer Developing Markets Fund.
The Essel-Invesco deal, upon completion, will see the Atlanta, U.S.-based firm increase its shareholding in Zee Entertainment to 18.74 percent. It had acquired a 7.74 percent stake in the media firm in 2002.
Essel Group is also working actively on other divestment plans, which include selling stakes its non-media assets, the conglomerate said in a regulatory filing on Tuesday. It had on July 31 announced sale of 11 percent promoter stake in Zee Entertainment to Invesco Oppenheimer for Rs 4,224 crore.
"The group wishes to confirm that the first tranche of the transaction comprising sale of 8.7 percent stake in ZEEL has been successfully concluded today," the company said in the filing. "The group is confident of completing the balance sale of 2.3 percent stake over the next few days."
Essel Group, burdened by debt of over Rs 11,000 crore, said it was working for "timely completion of operational formalities in order to conclude the entire transaction at the earliest". "The group is also working actively on further divestments including its non-media assets and remains confident to complete the same," the filing stated.
On Monday, Zee Entertainment shares rose 0.37 percent to Rs 363.05 apiece on the BSE while the benchmark Sensex gained 0.44 percent to end the day at 37,145.45 points.