Essel Group completes first tranche of ZEEL’s stake sale to Invesco
MUMBAI: Multi-faceted business conglomerate Essel Group today announced the successful completion of the first tranche of ZEE Entertainment Enterprises Limited’s (ZEEL) stake sale to Invesco Oppenheimer Developing Markets Fund (The Fund).
“Vide this Press Note, the Group wishes to confirm that the 1st tranche of the transaction comprising the sale of 8.7% stake in ZEEL has been successfully concluded today. The Group is confident of completing the balance sale of 2.3% stake over the next few days. The Group is working towards timely completion of operational formalities in order to conclude the entire transaction at the earliest,” Essel said.
The group said that the development reaffirms the 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 non-media assets and remains confident to complete the same.
In July, Essel Group had announced that Invesco Oppenheimer Developing Markets Fund (The Fund) has agreed to make an additional investment in ZEEL. The Fund has agreed to buy up to an 11% stake in ZEEL from its promoters, for a total consideration value of up to Rs 4,224 crore. Invesco has paid Rs 400 a share for ZEEL which is a 10.7% premium to ZEEL’s 31st July closing price of Rs 361.45 on BSE.
Invesco Oppenheimer is an existing investor in ZEEL with 7.74% stake. The acquisition of an additional 11% stake will take its shareholding in the company to 18.74%. Consequently, the promoter group’s shareholding will fall to 24.79% from the current 35.79%.
Essel Group had initiated the process of divesting its key assets, with an aim to repay all the lenders by September 2019. During this divestment process, the group has received a positive response from multiple partners expressing interest to buy the stake in ZEEL and the other key Non Media Assets.