Subhash Chandra-led Essel Group on Wednesday said that Invesco Oppenheimer Developing Markets Fund will make an additional investment in Zee Entertainment Enterprises Limited (ZEEL). Invesco Oppenheimer will buy 11 per cent stake in ZEEL for value of up to Rs 4,224 crore, Zee Entertainment said in a regulatory filing. “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 Essel Group said in an exchange filing.
The foreign fund already owns 7.74% in Zee Entertainment, which aims to divest its assets to repay all lenders by September 2019.
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,” Punit Goenka, MD and CEO, ZEEL said.
The Essel group is also in the process of divesting some non-media assets as well, the company also said in the exchange filing.
The promoters of the group have been paring their stake consistently over the last couple of quarters, even as the mutual funds have agreed to a standstill. The group promoter Subhash Chandra had written an open letter to lenders and investors apologising for not living up to their expectations in January 2019.―Financial Express