Zee Entertainment Enterprises declined 6.35% to Rs 338.5 at 11:02 IST on the BSE after Invesco Oppenheimer Developing Markets Fund agreed to make an additional investment in the company.
The announcement was made after market hours yesterday, 31 July 2019.
Meanwhile, the S&P BSE Sensex was down by 433.37 points or 1.16% to 37,047.64.
On the BSE, 10.21 lakh shares were traded in the counter so far compared with average daily volumes of 6.83 lakh shares in the past two weeks. The stock had hit a high of Rs 361 and a low of Rs 336 so far during the day. The stock had a hit a 52-week high of Rs 540.4 on 8 August 2018 and a 52-week low of Rs 288.95 on 25 January 2019.
Invesco Oppenheimer Developing Markets Fund has agreed to buy upto an 11% stake in Zee Entertainment Enterprises (ZEEL) from its promoters, for a total consideration value of up to Rs 4,224 crore. The fund has been a financial investor in ZEEL since 2002 and currently owns a 7.73% stake in the company (as on 30 June 2019).
ZEEL promoters held 35.80% stake in the company as on 30 June 2019.
Essel Group had initiated the process of divesting its key assets, with an aim to repay all the lenders by September 2019. During this divestment process, the group has received positive response from multiple partners expressing interest to buy the stake in ZEEL and the other key non media assets.
The announcement of 11% stake sale of ZEEL to the fund is a strong step in the overall divestment process, giving the promoters the required financial fillip to initiate the repayment process. Essel Group is confident to complete the overall process of repayment,well within the agreed timeline.
Speaking on this development, Punit Goenka, managing director and CEO, ZEE Entertainment Enterprises said, "I'm extremely glad to share that the Fund as a Financial Investor has further reposed its faith in ZEEL. It also gives me immense pleasure to note their strong belief and trust in the intrinsic value of our precious asset. It is the valuable belief and support of our esteemed financial investors that enables us to consistently generate great value, year after year."
Zee Entertainment Enterprises is a media & entertainment powerhouse offering entertainment content to diverse audiences.
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