Business conglomerate Essel Group has announced that Invesco Oppenheimer Developing Markets Fund has agreed to make an additional investment in ZEE Entertainment Enterprises (ZEEL).
The fund has agreed to buy up to an 11 percent stake in ZEEL from its promoters, for a total
consideration value of up to INR 4,224 crore.
Essel Group had initiated the process of divesting its key assets, with an aim to repay all the
lenders by September 2019. Essel Group is confident to complete the overall process of repayment, well within the agreed timeline.
In a statement to stock exchanges, the company disclosed that 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.
Punit Goenka, managing director and CEO, ZEEL 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.”
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. The Invesco Oppenheimer Developing Markets Fund, an investment company registered with the US Securities & Exchange Commission, has a long history of investing in India as a financial investor. The Fund has been a financial investor in Zee Entertainment Enterprises since 2002.
Along with ZEEL, Essel Group is also in the process of divesting some of its Non-Media Assets.