Amid ongoing changes in the shareholding, Subhash Chandra on Monday resigned as Chairman of the company’s board with immediate effect. However, he will continue as Non-Executive Director, Zee Entertainment Enterprises Limited (ZEEL) said in an exchange filing. “The Board accepted his resignation and noted that this is in line with the requirements of Regulation17 (lB) of SEBI Listing Regulations, which inter alia mandates that the Chairperson of the Board shall not be related to the Managing Director or the Chief Executive Officer of the Company. He will remain as Non-Executive Director of the Company,” Zee Entertainment said in a regulatory filing.
Last Wednesday, Essel Group, the promoter entity of Zee Entertainment said that it plans to sell 16.5 per cent stake in broadcasting and cable TV operator to financial investors including GIC Pvt Ltd, BlackRock, HSBC Global, Wellington Management as well as SBI Mutual Fund and Reliance Mutual Fund. “The Essel Group seeks to sell up to 16.5 per cent stake in ZEEL to financial investors, in order to repay loan obligations to certain lenders of the Group for whose benefit such shares are currently encumbered (and who have consented to such share sale by the Group),” Zee Entertainment said in an exchange filing after market hours on Wednesday.
Post deal, the Subhash Chandra-backed Essel Group will become a minority shareholder, however, retaining management control. Essel Group, earlier this year, sold up to 11 per cent in Zee Entertainment to Invesco Oppenheimer Developing Markets Fund for just over Rs 4,000 crore. In 1992, India’s first satellite TV channel Zee TV began operations under the leadership of Subhash Chandra. The TV network at present consists of up to 90 channels.
