OFI Global China buys 1.431% more stake in Zee

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Published: November 29, 2019 1:41:38 AM

After the transaction, the total holding of Essel Group in Zee will come down to around 5%, while the encumbered holdings will be down to around 1.1% of Zee from 10.7% earlier.

Shares of Zee fell 2.72% on Bombay Stock Exchange on Thursday to Rs 310.Shares of Zee fell 2.72% on Bombay Stock Exchange on Thursday to Rs 310.

OFI Global China Fund, a subsidiary of Invesco Oppenheimer Developing Markets Fund, has increased its stake in Zee Entertainment Enterprises (ZEEL) to 10.99% from 8.7% earlier by acquiring additional 1.37 crore shares in the company, Zee Enetertainment said in an exchange filing.

Separately, the company said that the promoter entity Cyquator Media Services sold 7.99 crore shares of Zee Entertainment, of which around 1.37 crore shares were sold off-market to OFI Global China Fund on November 25, and balance shares were sold on-market by Cyquator and the lenders.

On November 20, the company announced that, Essel Group plans to sell 16.5% stake in its flagship company ZEEL to financial investors to clear loan obligations to certain lenders of the group. Of the planned stake sale 2.3% was to be sold to OFI Global China Fund, which already held 8.7% stake in the media company. In August, Invesco Oppenheimer had agreed to buy out an additional 11% stake in Zee from its promoters for Rs 4,224 crore. The fund already held a 7.74% stake in Zee as of June 2019.

The promoter group held 22.37% equity shares in Zee Entertainment, of which 96% was pledged with lenders. Subhash Chandra, who resigned as chairman of Zee Entertainment on November 25, along with his family owes over Rs 7,000 crore to domestic lenders, including mutual funds, and Russian lender VTB. After the transaction, the total holding of Essel Group in Zee will come down to around 5%, while the encumbered holdings will be down to around 1.1% of Zee from 10.7% earlier.

Shares of Zee fell 2.72% on Bombay Stock Exchange on Thursday to Rs 310.80 a piece after two former directors of the firm raised concerns over several issues, including Rs 2,200- crore film advance given in 2018-19.

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