- The deal could be signed at Rs 430-450 per share
- It will give a breather to Chandra, whose Essel Group is facing a severe debt crisis.
Essel Group is in the sophisticated phases of Zee Entertainment Enterprises Ltd’s stake selling method. MD and CEO Punit Goenka informed that one binding offer has already been obtained and is anticipated to receive another in the next few days.
Punit Goenka said the firm provided another quarter of powerful results despite the industry’s operational difficulties as a result of implementing India’s (Trai) tariff order from the Telecom Regulatory Authority.
While Goenka refused to share any more details, people close to the development said that a large South Indian TV broadcasting network and a global hedge fund have also shown interest in ZEE.
that Atairos, a $4-billion investment company led by former Comcast CFO Michael Angelakis, is looking to team up with PE fund Blackstone and James Murdoch’s office Lupa Systems together to bid for ZEE.
The deal could be signed at Rs 430-450 per share, he added.
A binding offer refers to an offer made by a bidder to acquire a target company after the due diligence phase of a sale process is complete. This offer constitutes a formal contract between the bidder and seller if the seller accepts the bidder’s terms.
Deal to help clear Dr. Chandra’s debt crisis:
The deal will give a breather to Chandra, whose Essel Group is facing a severe debt crisis. Chandra had, last year, announced his plans to sell half of the promoters then 41% stake in the company.
For the first quarter of FY20, ZEEL reported consolidated revenue of Rs20,081 million. Advertising revenue for the quarter was Rs11,867 million, a growth of 3.6% year-on-year. Domestic advertising revenue grew by 4.2% year-on-year to Rs11,322 million. International advertising revenue for the quarter was Rs545 million. Subscription revenue for the quarter was Rs7,088 million, a growth of 36.7% year-on-year. Domestic subscription revenue grew by 46.7% over the same period to Rs6,240 million. International subscription revenue was Rs848 million.
We have experienced a powerful market-wide take-up of our channels, reflected in our national subscription revenue development of 47 percent. It validates our status as the country’s number one entertainment network, constructed on the basis of a powerful place in each of the industries in which we work. We are confident that all stakeholders will benefit from the new tariff system and will significantly enhance the customer experience, “he said.
ZEE5, the country’s fastest-growing over-the-top (OTT) platform, continued its powerful run and is working to become India’s digital entertainment platform number one. ZEE5 had 76.4 million monthly active customers worldwide in June 2019 and the platform had 6.6 million worldwide daily active customer base. ZEE5 customers spent on the platform an average of 33 minutes a day.
In the original stage, it saw an encouraging reaction in the global markets. I am confident that the platform’s value proposition and involvement with customers will continue to enhance with its powerful content line-up and alliances with major players in the digital ecosystem, “Goenka said.