Mumbai/IBNS: Essel group will sell 16.5% stake in Zee Entertainment Enterprises Ltd (ZEEL) to pay the dues of some of its lenders, media baron Subhash Chandra, who heads the group, said on Wednesday, media reports informed.
With the sale, Subhash Chandra will lose control over Zee Entertainment Enterprises Ltd as the promoter stake will be reduced to 5%.
"The Essel Group seeks to sell up to 16.5% stake in 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)," the Essel Group said.
"Out of the aforesaid, the Group seeks to sell 2.3 per cent 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 5 per cent, out of which encumbered holdings of the Group will reduce to 1.1% of ZEEL," it added.
Essel Group had already sold 11 per cent of its stake in Zee Entertainment for Rs. 4,224 crore to Invesco Oppenheimer Developing Markets Fund.
Before Wednesday's announcement, Essel Group held 22.37% promoter stake in Zee. Out of these shares, Essel Group had pledged 21.48% shares as collateral to its financers.
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