Subhash Chandra To Lose Control Of Zee Entertainment After Stake Sale

Media baron Subhash Chandra-led Essel Group on Wednesday said that it is planning to sell a 16.5 per cent stake in Zee Entertainment Enterprises Limited (ZEEL) to financial investors in order to repay loan obligations to certain lenders of the group. After this transaction, the promoter stake in Zee Entertainment will be reduced to 5 per cent, which means that Subhash Chandra will lose control of Zee Entertainment Enterprises.

Zee, considered to be the pioneer of television entertainment industry in India, was launched by Subhash Chandra in 1992. Ever since the launch year, the company expanded operations to enter packaging, infrastructure, education, precious metals, finance and technology sectors.

"The 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)," the Essel Group said.