US-based Invesco-Oppenheimer Fund raises 11 percent stake in Zee
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US-based Invesco-Oppenheimer Fund raises 11 percent stake in Zee

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Written by Saurav Bhagat
[email protected] | Noida | Published on: July-31-2019 09:20 PM
  • Subhas Chandra-led promoters own 35.79 percent of ZEEL
  • The Invesco Oppenheimer Developing Markets Fund is an investment company registered with the US Securities & Exchange Commission
  • The stake purchase will go towards paying off loans worth as much as 13,000 crores that the Essel group has across different group businesses

US-based Invesco-Oppenheimer Developing Markets Fund to raise 11 percent stake in Zee Entertainment Enterprises Ltd (ZEEL), Subhash Chandra’s Essel Group’s flagship media company. Stake sales will be up to a complete consideration value of as much as 4,224 crores, the firm said in a press statement. Entertainment Enterprises Ltd (ZEEL), Subhash Chandra’s Essel Group’s flagship media company. The stake sale will be up to 4,224 crores for a complete consideration value, the firm said in a press release.

The proceeds from the stake purchase will go towards paying off loans worth as much as 13,000 crores that the Essel group has across different group businesses, especially in infrastructure, and will also assist prevent a looming default of 7,000 crores of payments in September to mutual fund shareholders.

The Essel Group launched the process of divesting its main assets with the goal of repaying all lenders by September 2019,” said the declaration.

The fund has been in Zee Entertainment Enterprises Ltd since 2002 as a financial investor. Subhas Chandra-led promoters own 35.79 percent of ZEEL, of which 64 percent are promised to financial institutions.

Next Big Brand reported in June that the debt-ridden Essel group was looking to sell a minority interest in ZEEL broadcaster to a financial investor to fulfill instant payment commitments by the end of July. In relation to their continuing attempts to find a strategic buyer, this has been selling some of the infrastructure assets of the group. Subhash Chandra has placed on the block up to 51 percent of ZEEL’s ownership to stave off creditors and shore up the finances of the group.

Punit Goenka, Managing Director and CEO of ZEE Entertainment Enterprises said,

I am very glad to share that ZEEL’s belief in the Fund as a monetary investor has continued. It also provides me great joy to note their powerful faith and confidence in our valuable asset’s intrinsic value. It is our esteemed economic investors ‘ precious faith and support that allows us to continuously produce great value year after year.’

The Invesco Oppenheimer Developing Markets Fund, which is an investment company registered with the US Securities & Exchange Commission, has a long history of investing in India. The Fund has been an investor in Zee Entertainment Enterprises since 2002.

 

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Saurav Bhagat

A chai-lover who loves to travel and learn new things.
Have a story to tell? I can be your pen :)

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