Additional stake sale on its way for Essel Group
The Essel Group, which has initiated the process of divesting its key assets, will now sell stakes in their power and infrastructure projects
Published - Jul 31, 2019 11:17 PM Updated: Jul 31, 2019 11:17 PM
The Essel Group, on Wednesday, announced that Invesco Oppenheimer Developing Markets Fund (The Fund) that is already a 7.7 per cent stake holder in the group has agreed to make an additional investment in ZEE Entertainment Enterprises Ltd. (ZEEL). That is, however, not the end of stake sales.
According to analysts, the key takeaway from the conference call with Punit Goenka, MD and CEO, ZEEL, on Wednesday, was that an additional stake sale was on its way as more funds are required to repay all lends by September 2019.
The Essel Group, which has initiated the process of divesting its key assets, will now sell stakes in their power and infrastructure projects.
The Fund as revealed earlier in the day has agreed to buy up to an 11 per cent stake in ZEEL from its promoters, for a total consideration value of up to Rs 4,224 crore. The total pledge amount is Rs 11,000 crore and there is no lock-in period for The Fund.
According to an analysis by Emkay Global, the deal is only a half measure and does not remove overhang fully.
However, the risk of a majority stake sale resulting in a cessation of Punit Goenka-led management team has also gone away. The team has delivered a strong performance over the last 7 to 8 years, with cost-effective content creation and market share gains, the analysis further states.For more updates, be socially connected with us on
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