The Essel group will divest the equity stakes held in AB Corp and B4U which was bought from Ketan Parekh. The Essel promoters will also return the money used for the acquisition of the shareholding in these companies to Zee Telefilms before June 30, 2001.
Zee had extended Rs 50 crore inter-corporate deposits to Parekh in lieu of the stakes in AB Corp and Essel.
The decision by the Essel promoters to retain the shareholding in their book was taken as the minority shareholders of ZTL objected to such investments in companies where proper valuations had not been done.
Chandra said Parekh had invested about Rs 75 crore in AB Corp which has earned substantial revenues this year. Chandra also pointed out that stakes in AB Corp and B4U made sense as ZTL had picked up minority shareholding in several TV software companies. Parekh had investments in other media companies too like Tips and Subhash Ghai's Mukta Arts.
Dwelling on the quantum of shareholding that Parekh through his companies held in ZTL, Chandra said in April 2000 the holding was about 11 lakh shares (about 0.2 per cent), while in April 2001 Parekh's companies held 56,000 shares .