Zee Entertainment Enterprises jumped 6.89% to Rs 328.30 as Essel Group is further planning to divest its stake in the company.
The Essel Group ("group") is planning to sell about 16.5% stake in Zee Entertainment Enterprises (ZEEL) to financial investors in order to repay loan obligations to certain lenders of the group for whose benefit such shares are currently encumbered (and who have consented to such share sale by the group). Out of the aforesaid, the group seeks to sell about 2.3% stake in ZEEL to OFI Global China Fund, LLC and/or its affiliates.
Pursuant to the aforementioned transactions, the post-transaction overall holdings of the group in ZEEL will be about 5%, out of which encumbered holdings of the group will reduce to around 1.1% of ZEEL. This development reaffirms the group's positive progress on its overall asset divestment approach, undertaken to generate adequate liquidity for the repayment process. The group is also working actively on further divestments including its media/non-media assets and remains confident to complete the same. The announcement was made after market hours yesterday, 20 November 2019.
Shares of ZEEL soared 14.89% in two trading sessions to its current market price of Rs 328.30, from its recent closing low of Rs 285.75 on Tuesday, 19 November 2019.
In the past one month, shares of ZEEL surged 31.13% to its current market price of Rs 328.30 outperforming the Nifty Media index which rose 8.11% to its current 1,899.65.
ZEEL's consolidated net profit soared 41.8% to Rs 548.21 crore on 7.4% rise in net sales to Rs 2,122.01 crore in Q2 September 2019 over Q2 September 2018.
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Zee Entertainment Enterprises is a media and entertainment company engaged in providing broadcasting services. The company operates through content and broadcasting segment and offers content in multiple languages and offers approximately 38 international and over 30 domestic channels.
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