Essel Group plans to divest up to 50% of promoter share in ZEEL

New Delhi:  Essel Group has announced that it has decided to undertake a strategic review of Essel's shareholding in Zee Entertainment Enterprises Limited (ZEEL) with a view to maximize value for the business.

“The proposed transaction to divest upto 50 percent of Essel’s holding to such a partner, is expected to address the Essel Group's capital allocation priorities and will allow ZEEL shareholders to capture the full value of India’s largest entertainment broadcaster with an ever strengthening bouquet,” the company said in a statement.

Essel Group has decided to appoint Goldman Sachs Securities (India) Ltd. as their investment banker and US and European based LionTree as an international strategic advisor for this exercise.

Essel group said that it expects the outcome of the strategic review to be concluded by March/April 2019.

“We hope that this transaction will meet the objectives of the Essel Group as well as the minority shareholders of ZEEL,” the company said.

Essel Group has been a leading business conglomerate having diverse business presence across Media, Entertainment, Packaging, Infrastructure, Education, Precious metals, Finance and Technology sectors.

The company said that Rajya Sabha MP and Chairman of Essel Group and ZEE Subhash Chandra, family along with its advisors met in Mumbai over the Diwali weekend to undertake a strategic review of its businesses in view of the changing global media landscape. The strategic review underscored the importance of technological advancements such as AI, IOT, 3D printing AR, VR and many more.

“India remains a priority market for Subhash Chandra and the Essel Group and the family believes that India is at the cusp of significant growth. The family will continue to invest in growth opportunities in India,” the company added.

The management of ZEEL under Punit Goenka and Amit Goenka has been well appreciated by all stakeholders and reflected in the performance of the company.

Speaking on where the business stands today, Jawahar Goel said, "Punit and Amit have made the right sustainable investments for the future and the business is growing ahead on all fronts in a focused and disciplined way.”

The company said that there is recognition that a right global strategic partner will help in transforming ZEEL further, and maximise long term value. It will transform it into a global media-tech player with a unique offering of content to the main stream audiences in 170 plus countries putting it into a King position globally.