ZEEL promoters to make way for convergence

India's leading private broadcaster Zee Entertainment Enterprises Limited’s promoters Essel Group plan to offload half of their holding in the company informed a presser issued by the promoter group of the company on Wednesday.

ZEEL's promoters-led by its Founder and Chairman, Subhash Chandra are of the opinion that roping in a strategic partner will enable the company to adopt disruptive technologies including AI, IoT, AR, VR and transform ZEEL to a tech-media company to be future-ready.

Essel Group is a diversified business conglomerate which holds 41.6 per cent stake in Zee Entertainment Enterprises Limited (ZEEL). The group plans to divest close to 50 per cent stake, which would mean 20 per cent of ZEEL. The proposed divestment could net Essel Group close to Rs. 85 million at current valuations, which can be utilised for the group's capital allocation priorities, besides enhancing shareholder value through the partnership. Essel has appointed Goldman Sachs Securities (India) as the investment banker and LionTree as the international strategic advisor for the divestment plan.

This deal is expected to give an international media player entry point to the India mass media industry. Meanwhile, the stock of ZEEL was quoting Rs. 454.70 per share, up by Rs. 16.50 or 3.77 per cent on Wednesday's pre-lunch session on BSE.