Zee stake sale expected to be finalised by July: Reports
News reports suggest that the promoters will still hold a minority stake in Zee Entertainment after they sell the stake to the potential investor
Published - May 28, 2019 6:44 PM Updated: May 28, 2019 6:44 PM
According to reports, the promoters of Zee Entertainment Enterprises Ltd., are said to be in talks with investors to sell company stakes in an effort to reduce debt, with binding bids expected in July. It has been reported that the Subhash Chandra promoted Essel Group owes creditors about Rs 17,000 crore, and the group had pledged shares of ZEE Entertainment, Zee Media Corporation Ltd. and Dish TV Ltd against loans.
News reports suggest that the promoters will still hold a minority stake in Zee Entertainment after they sell the stake to the potential investor.
As per reports, Punit Goenka indicated that he may still continue to head Zee Entertainment in a professional capacity, saying, "That is part of the negotiation and is one of the terms. I am open to whatever helps me in the prime objective of repaying the loan.”
It is believed that the company's subscriber numbers, especially in the Hindi - speaking market dipped in the March quarter due to TRAI's new tariff order, with Zee Entertainment’s reach declining 6.5 percent during the three months ended March. However, Zee Entertainment's advertising revenue guidance was higher than the industry.
Zee is expected to revisit its subscriber guidance at the end of June quarter and hopes the disruption will stabilise by April-June 2020. The company has invested approximately Rs 2,000 crore in movies and content for its channels and over-the-top platform, which has a monthly active user base of 61.5 million.
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