The promoters of Zee Telefilms have placed 90 lakh shares out of their personal holdings with an unnamed foreign institutional investor (FII). The proceeds of the placement will be used to pay Zee Telefilms upon settlement. With this, the promoters’ stake in Zee Telefilms has come down to 54.03 per cent from 56.28 per cent.
According to industry sources the amount raised from this settlement will clear the promoter’s liabilities of Rs 220 crores to Zee. They had borrowed the money to fund stake acquisitions in B4U and AB Corporation.
The promoters had to repay their entire dues by the end of December 2001, which, however they did not. So far they have been repaying their dues to Zee in a staggered manner.
During August and September 2001, the promoters had sold about 1.5 per cent stake in Zee Telefilms twice to raise around Rs 70 crores. The money was paid to the media company.
On July 12, the company paid another Rs 50 crores, on August 17 another Rs 25 crores and on December 21, the company paid Rs 13 crores of its debt dues.
The recent sale of 90 lakh shares to the foreign institutional investors completes the repayment. The Essel Group, using the borrowed funds, was planning to pick up around 28.5 per cent in AB Corp and another 15 per cent in B4U from stock broker Ketan Parekh.