Essel Group, which controls the Zee Entertainment Enterprises Ltd (ZEEL) cluster of TV channels, has confirmed that its proposed sale of 50 per cent of its holdings is making steady progress and is at an “advanced stage”.

However, Essel did not provide further detail citing confidentiality agreements in place with the prospective buyer(s).

“Our intent has not changed […] but if somebody is making an offer (to buy) beyond the 50 per cent stake we will look at it,” ZEEL MD and CEO Punit Goenka said in an analysts’ call.

This time last year Essel Group controlled 66.2 per cent of ZEEL, but this shareholding has since fallen to 39 per cent following the sale of shares in order to reduce borrowings.

Essel are using Goldman Sachs as its adviser and Lion Tree as its international strategic advisor for the transaction.

The news did not go down well with the market which saw ZEEL shares crash as much as 11 per cent during trading on May 7^th.

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