Zee Entertainment share price surged after the promoter group announced a plan to sell nearly 16 per cent stake in the company for Rs 4,343 crore.
Zee Entertainment Enterprises Ltd share price surged after the promoter group announced a plan to sell nearly 16 per cent stake in the company for Rs 4,343 crore. The stock surged up to 19 per cent to an intraday high of Rs 364 from the previous close of Rs 307. On 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. “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 the 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.
Meanwhile, earlier in the day, stock markets inched lower as investors booked profits after the government approved stake sales in some state-run companies on Wednesday. The government agreed to sell stakes in five state-run companies, including oil refiner BPCL. The government also announced a 2-year moratorium on payment of spectrum dues for the telecom operators including Bharti Airtel, Vodafone Idea and Reliance Jio. Bharti Airtel and Vodafone Idea had earlier warned that their operations may be under threat unless the government stops hitting operators with higher taxes and charges.