VTB Group acquires rights to sell 10.71% stake in ZEEL to recover loan1 min read . Updated: 16 Oct 2019, 07:48 PM IST
- Essel Media Venture had created pledge on 10.71% stake in favour of VTB Capital in 2017
- The debt-ridden Essel Group had on earlier on 31 July this year announced to sell 11% promoter stake in ZEEL to Invesco Oppenheimer for ₹4,224 crore
NEW DELHI : Zee Entertainment Enterprise Ltd (ZEEL) on Wednesday said VTB Capital PLC, the investment management arm of Russia-based state-run financial services giant VTB Group, has acquired rights to sell 10.71 per cent equity held by Essel Media Ventures in the company.
Confirming media reports, ZEEL in a regulatory filing said VTB Capital Plc has secured the right to potentially monetise 10.28 crore shares of the company held by its promoter Essel Media Ventures.
"Pursuant to its right under the loan facility and upon instruction from the lenders VTBC has acquired the right to direct the disposal of 10.71 per cent stake in the target company held by Essel Media Ventures Ltd on October 11, 2019 and this disclosure is being made accordingly," ZEEL said in the filing.
However, it added that the "said shares continue to be held by their current holder", which is Essel Media Ventures.
Essel Media Venture had created pledge on 10.71% stake in favour of VTB Capital in 2017.
As on September 2019, promoters had 22.37% stake in ZEEL, with the rest 77.63 per cent being held by the public.
The Subhash Chandra-led Essel Group, which is facing a debt of over ₹11,000 crore, had on September 19 said it has secured a six-month extension from local lenders, including mutual funds, to repay debt.
The debt-ridden Essel Group had on earlier on 31 July this year announced to sell 11% promoter stake in ZEEL to Invesco Oppenheimer for ₹4,224 crore.
Later on September 10, Essel Group announced completion of the first tranche of ZEEL stake sale (8.7%) to Invesco Oppenheimer Developing Markets Fund.
Sale process for the remaining 2.3% stake is yet to be completed.
Essel Group had also said it was working actively on further divestments, including its non-media assets.