The chairman of Zee Telefilms , Subhash Chandra has diluted his stake in the company by 2 per cent for a total consideration of Rs 97 crore. Mr Chandra sold a total of 85,00,000 shares at Rs 115 per share.
According to market sources, the block deal was rumoured to be between Kotak and Credit Lyonnaise on behalf of a buyer, which is said to be a US-based FII. The largest chunk is however reported to have been bought by Warburg Pincus with a smaller tranche being purchased by other investors. Mr Chandra’s stake in Zee Telefilms now stands at around 54 per cent.
Last year, Mr Chandra had announced that Zee Telefilms was looking to dilute a 26 per cent stake in favour of a strategic partner. Interestingly, it was Warburg Pincus that was appointed to be advisor for this particular deal.
It was also widely speculated that this would be in favour of AOL-Time Warner. Though no decision has emerged since then, Zee has tied up with Turner International to jointly distribute their network in the country.
On the BSE, Zee shares closed down Rs 2.10 at Rs 116.60 touching a high of Rs 126.90 and low of Rs 114.50 on a volume of 2.23 crore shares, while on the NSE, the shares closed up Rs 2.15 at Rs 120.30 on a volume of 120.30 crore shares.