OFI Global China Fund acquires 1.43% additional stake in ZEEL

MUMBAI: OFI Global China Fund LLC has consolidated its stake in ZEEL with the acquisition of an additional 1.37 crore equity shares amounting to 1.431% stake.

Following the acquisition the shareholding of OFI Global China Fund LLC increased to 10.99%, the filing added. Prior to the acquisition, OFI Global China Fund LLC held an 8.7% stake in ZEEL.

“Pursuant to this acquisition, the shareholding of the acquirer (OFI Global China Fund LLC) along with persons acting in concert with it has increased by 2% of the total shareholding of the company from the last disclosure made for the acquisition on September 9, 2019,” ZEEL said in a regulatory filing.

ZEEL promoter entity Cyquator Media Services has sold 79,912,915 shares of the media company while the remaining shares have been sold off-market. “Out of aggregate quantity of 79,912,915 shares sold, 13,749,266 shares have been sold off-market on November 25, 2019, to OFI Global China Fund LLC and balance shares have been sold on the market by Cyquator and/ or the Lenders,” a separate regulatory filing added.

Recently, ZEEL promoters had raised Rs 4343.18 crore through the sale of 14.28 crore shares at an average price of Rs 304 per share. In all, the promoters sold a 15.7% stake through block deals on the NSE.

The shares were bought by a clutch of institutional investors namely Government of Singapore (2.85 crore), Societe Generale (1.66 crore), JNL Invesco Global Real Estate Fund (82.5 lakh), Key Square Master Fund II LP (60 lakh), Norges Bank On Account Of The Government Pension Fund Global (70 lakh), and Smallcap World Fund INC (76.73 lakh).

On 20th November, the Essel Group had said it is planning to sell an additional 16.5% stake in Zee Entertainment Enterprises Limited (ZEEL) to financial investors in order to fulfill its debt repayment obligations. The group will sell a 2.3% stake in ZEEL to OFI Global China Fund, LLC and/or its affiliates.

Following the stake sale, ZEEL chairman Subhash Chandra had resigned from his post, however, he will continue on the company’s board.

Earlier, Essel Group had sold an 11% stake in ZEEL for Rs 4,224 crore to Invesco Oppenheimer Developing Markets Fund. Invesco had 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.

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