Subhas Chandra (File Photo: IANS)
New Delhi (IANS) The Subhash Chandra-led Essel Group on Wednesday said that it has reached an agreement with Invesco Oppenheimer Developing Markets Fund to make an additional investment in ZEE Entertainment Enterprises Ltd (ZEEL).
The Fund has agreed to buy up to an 11 per cent stake in ZEEL from its promoters, for a total consideration value of up to Rs 4,224 crore.
The 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.
On this development, 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 per cent 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, which is an investment company registered with the US Securities and Exchange Commission, has a long history of investing in India as a financial investor. The Fund has been a financial investor in ZEEL since 2002.
Along with ZEEL, Essel Group is also in the process of divesting some of its non-media assets to complete the overall process of repayment within the agreed timeline.