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Essel promoters open to selling over 50% of their stake in ZEEL; in talks with over 2 buyers

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Press Trust of India New Delhi
Last Updated : Feb 06 2019 | 3:00 PM IST

Promoters of Zee Entertainment Enterprises Ltd (ZEEL), the flagship firm of troubled Essel group, are open to sell over 50 per cent of their holdings in the firm as a part of their asset monetisation to repay debt, and are in talks with more than two investors for the same, a senior company official said.

Zee Entertainment Enterprises had announced in November last year that its promoters, led by Subhash Chandra, planned to sell up to 50 per cent of their equity stake in the company to a strategic partner.

"Our intent has not changed...but if somebody is making an offer (to buy) beyond the 50 per cent stake we will look at it," ZEEL MD and CEO Punit Goenka said in an analysts' call.

He was responding to a query on whether the promoters would be looking to sell a higher stake considering their holding has went down to 39.08 per cent following sale of 24.38 million pledged shares.

As on December 31, 2018, promoters held 41.62 per cent stake in ZEEL.

Goenka, however, said, as part of the talks with the potential investors, the promoters had earlier indicated willingness to sell around 20 per cent of their holding.

Responding to another query on the number of potential buyers, Goenka said the figure of "at least two or more players" which he had put out in an earlier call with analysts "still holds".

Earlier this week, Essel group had sealed a formal agreement with its lenders to keep its companies afloat, under which it gets time till September to deleverage or pare its debt. Rs 13,500 is the loan against shares of all the listed companies of the promoters

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First Published: Feb 06 2019 | 3:00 PM IST

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