Yesterday evening after market hours, Zee Entertainment announced that Invesco Oppenheimer Developing Markets Fund has agreed to make an additional investment in ZEE Entertainment Enterprises Ltd. (ZEEL).
The Fund has agreed to buy up to an 11% stake in ZEEL from its promoters, for a total consideration value of up to Rs. 4,224 crore.
Essel Group had initiated the process of divesting its key assets, with an aim to repay all the lenders by September 2019. The consolidated promoter debt is estimated to be at Rs.17,000 crore.
Oppenheimer Fund already owns 7.74% stake in ZEEL and post this deal, it could go up over 18%. And promoters’ stake could fall to below 25% from the current 35.79%.
The market is not taking this news positively as the stock opened weak and went down to an intraday low at Rs.347.20, going down 4%.
As explained by Editor, Mr.SP Tulsian, this is actually a good move as it will put an end to the pledged shares going on the block and the swift action taken to repay debt is rarely seen in today’s time.