Zee Entertainment board approves Rs 600-crore share buy-back plan

Zee Entertainment Enterprises Ltd. and its Board of Directors have taken continued efforts to evaluate avenues that can further enhance shareholder returns.

The Board of ‘Z’, in a meeting conducted on Thursday approved a proposal for the buy-back of up to 65,934,065 equity shares of the company of face value of Re 1 per equity share, at a price of Rs 91, aggregating up to Rs 600 crore.

The decision by the Board follows a comprehensive review of the Company's financial strength, free cash flow and business outlook, with a view to enrich the value-creation journey for all stakeholders.

The Board unanimously arrived at the proposal for buy-back of equity shares after a thorough deliberation of other key routes and the feedback shared by investors and shareholders. The Board recognized the buy-back as an optimal approach to reward the shareholders, as well as reinstate confidence in its robust fundamentals and strategic roadmap for the future.

The buy-back of equity shares represents 6.86% of the total paid up equity share capital of the Company. The Board has also noted the intention of the Promoters and members of the Promoter Group to not participate in the proposed buy-back.

Commenting on the Board’s decision, R. Gopalan, Chairman, Zee Entertainment Enterprises Ltd. said, “The Board remains firmly committed to safeguarding the interests of all shareholders and ensuring that the Company's capital is deployed in a prudent and value-accretive manner. The decision to approve the buy-back of equity shares reflects our confidence in the Company’s potential and fundamental strength to capitalize on the opportunities in the future. The Board believes that the Company's intrinsic value is not appropriately reflected in its current market valuation, and the buy-back represents a prudent opportunity to reinforce confidence in the Company’s capabilities to generate long-term value for shareholders. The Board conducted a detailed assessment of the Company's financial position, growth plans and shareholder expectations. The management also presented to the Board an approach being taken for medium to long-term growth of the Company to strengthen its topline and bottomline."

Speaking about the strategic efforts undertaken by the company, Punit Goenka, Chief Executive Officer, Zee Entertainment Enterprises Ltd. added, “The Company has implemented significant steps to enhance its capabilities, sharpen the strategic focus across content, digital and emerging growth opportunities and drive operational efficiencies. ‘Z’ remains on a firm growth traįectory and the Board's approval on the buy-back of shares further reflects the immense potential of the Company and its robust capabilities to capitalize on the opportunities ahead. As we continue to execute our strategic priorities with discipline, we remain committed to delivering sustainable growth and creating long-term value for our shareholders."