Subhash Chandra’s Essel Group is in debt of 13 thousand crores. It also has the liability of 7000 crores of mutual fund investors as well. The US company Invesco Oppenheimer Developing Markets Fund has agreed to buy a larger stake in 4224 crores for taking 11 percent stake in ZEE Entertainment Enterprises Limited (ZEEL), the leading media company of Essel Group, the country’s largest private TV channel belonging to Subhash Chandra. Invesco Oppenheimer Developing Markets Fund already had a seven percent stake in the company. After the deal, Invesco will have a total of 18 percent stake.
In principle, Essel Group is in the process of selling its company’s stake to repay its promoters’ debt until September 2019. Invesco Oppenheimer Developing Markets Fund is an investment company as it is registered in the US Securities and Exchange Commission. This company has a long history of financial investment in India. This company is ZEEL’s Financial Investor since the year 2002.
Managing director and CEO Punit Goenka, says, “I am very pleased to say that Invesco has expressed its trust in the Zee group as an investor. This is the invaluable trust and support of our financial investors, which enables us to create great value year after year. Apart from ZEEL, Essel Group is also preparing to sell shares of non-media assets. Essel Group believes that the process of refunding their money back to the lenders will be completed to gain back the lost trust.
According to the stock price (Rs 381) of July 30, the market capitalization of the Zee company group was Rs 36,613 crores. The company has also decided to sell 14 projects related to infrastructure. These include two State Highways and four projects of the National Highway Authority of India (NHAI). It is estimated to raise Rs 11000-12000 crore which will be enough to clear off the debts of lenders. Zee Group wants to sell a total of 51 percent stake. It’s market value is 190 billion rupees ($ 2.77 billion). During this entire process, the ZEE Group received several positive responses from multiple partners of the USA expressed their interest to buy the stake in ZEEL and the other key Non Media Assets.