Essel to sell off 50% of ZEEL
November 14, 2018
By Chris Forrester
Essel Group, the Subhash Chandra-controlled conglomerate, is looking to sell half of its holdings in entertainment business Zee Entertainment (ZEEL). Essel owns 41.6 per cent of ZEEL.
Essel has appointed investment bankers Goldman Sachs and LionTree to research and identify potential partners as part of a wider strategic review.
“It has been decided to undertake a strategic review of Essel’s shareholding in ZEEL with a view to maximise value for the business. The proposed transaction to divest up to 50 per cent 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,” Essel Group said in a statement.
The strategic review is expected to wrap 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 added. “However, 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 mainstream audiences in 170 plus countries putting it into a king position globally,” the group said.