Essel group sold stake in ZEE to US fund in order to serve its debt obligations
October 07, 2019
Essel Group, the Mumbai-based Indian conglomerate, announced on the 31st of July 2019 that it had agreed to sell 11% of the shares it controlled in ZEE Entertainment Enterprises Ltd (ZEEL) to Invesco Oppenheimer Developing Markets Fund (Oppenheimer). According to the announcement, Oppenheimer paid a total of Rs 42.24 billion (equivalent to $611.6 million).
The deal is assigning ZEEL with a market valuation of Rs 38,400 crore (equivalent to $5.6 billion). This agreement is logically putting an end to months of speculation about a possible buy-out of ZEEL.