Conglomerate Essel Group, which runs the Zee group of companies, said it has arrived at an agreement with lenders that have a pledge on shares held by the promoters, with the group guaranteeing them that there will be no default in payment due to the sharp fall in stock price.
“I am pleased to share that we have achieved an understanding with lenders,” chairman Subhash Chandra said in a press release issued on Sunday evening.
The development comes after the promoters and lenders of the group — comprising mutual funds, NBFCs and banks — held a meeting following the steep fall of the stock price of ZEE Entertainment Enterprises and Dish TV.
A Balasubramanian, CEO, Aditya Birla Sun Life AMC, was quoted as saying in the release that his company has always believed in the intrinsic value of ZEE Entertainment and most above, the sheer value system with which its promoters function. “I am very glad with the outcome of the meeting, which enabled us to arrive at a consensus, in the interest of all stakeholders.”
Zee Entertainment Enterprises, a television broadcasting and digital media company, fell 26.43 percent to close at Rs 319.35 on the Bombay Stock Exchange on Friday. Dish TV fell 32.74 percent to Rs 22.6 at close on the BSE on Friday.
Market watchers have attributed the fall to a report in news portal,
The Wire, which said the company may be associated with Nityank Infrapower, which is being investigated by the Serious Fraud Investigation Office (SFIO) for alleged money laundering during the Narendra Modi government’s demonetisation exercise launched in end 2016.
The share fall pushed
Chandra on Friday to write an extraordinary letter to lenders, asking them not to react in an anarchical manner and to maintain patience, until the process of ZEE Entertainment’s stake sale was completed.
Zee Entertainment said its promoters planned to sell some of its stake in the company and hired advisers to help transform the business into a global tech-media company. Zee said it will divest up to 50 percent of promoter stake to a strategic partner.
“Lenders drew comfort from reiteration by the promoters for a speedy resolution through a strategic sale in a time-bound manner,” said Sunday’s statement, adding that the promoters guaranteed that they will work towards a speedy resolution through a strategic sale in a time-bound manner.In a separate statement,
ZEE sought to distance itself from Nityank. Essel clarified that Nityank is an independent company and does not belong to it.