Mumbai: Zee Entertainment Enterprises has completed the sale of 8.7% of its stakes to US-based Invesco Oppenheimer Developing Markets Fund as per a plan announced in July. The remaining 2.3% stake that is to be transferred to the fund will also be sold in the “next few days”, the group led by Subhash Chandra said.
The move is part of efforts by the group to clear its debts accumulated in non-media businesses. The 11% stake being sold to the US fund will fetch around Rs 4,220 cr. In addition to this Zee’s parent Group Essel will also sell 205MW of solar assets in Punjab, Karnataka and UP to Adani Green Energy Ltd at an enterprise value of Rs 1,300 crore.
“The Group is also working actively on further divestments including its non-media assets and remains confident to complete the same,” the group said today.
Subhash Chandra, the Chairman of the Essel Group has always maintained that he will pay back the entire debt, even if they have to sell a controlling stake in flagship Zee Entertainment to another company or firm.
The group was initially discussing selling a controlling stake to any global media company.
However, it decided to go for the current deal — which involves the sale of a non-controlling stake to a financial investor — as conditions have turned less dire in recent weeks.
Today’s “development reaffirms the Group’s positive progress on its overall asset divestment approach undertaken, to generate adequate liquidity for the repayment process,” the group said.