ZEEL has received one binding offer for stake sale, another one expected in a few days: Punit Goenka

MUMBAI: Media conglomerate ZEEL is moving fast with its stake sale process. The company will have to choose between two binding offers. It has already received one binding offer while another one is coming up in a few days.

ZEEL MD and CEO Punit Goenka told analysts during the first-quarter earnings conference call that the company expects to receive another offer in a couple of days. The promoters will evaluate both the deals and make an announcement in a few days. If the second offer doesn’t come then the promoters will go ahead with the offer on the table.

“We already have one binding offer on the table at the moment and there is another one coming up. The family will evaluate and see how the transaction will impact our strengths to take a call soon,” he said.

Earlier, Goenka had said that the stake sale process is expected to be concluded by July. “We are progressing well and with political uncertainty behind us, we hope to sign a binary agreement by July,” Goenka had said.

The company has reiterated that the stake sale process is making steady progress and is at an advanced stage. ZEEL promoters led by Subhash Chandra plan to sell up to 50% of their equity stake in the company to a strategic partner.

On 26th January, Essel Group chairman Subhash Chandra had promised that he will clear the debt of lenders by selling promoter stake in his crown jewel ZEEL.

He had also admitted having made wrong decisions like making incorrect bids in the infrastructure business and the merger of direct to home (DTH) operator Videocon d2h with Dish TV.

He had also alleged that some negative forces are out to sabotage his efforts to raise money through a strategic sale in the flagship company ZEEL.

In January, the Essel Group had sealed a formal agreement with its lenders, under which it gets time till September to deleverage or pare its debt. On 25th January, Essel group companies saw a combined erosion of Rs 13,352 crore in market valuation following reports that a promoter entity is being probed for cash deposits after demonetisation.

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