Subhash Chandra  struggles  to retain Zee's control amid VTB’s stake sale talks, says report

Russian investment bank VTB Capital is in discussions with two potential investors to sell a 10.71 percent stake in Zee Entertainment Enterprises Ltd, livemint reported, citing two people directly aware of the development.

According to the sources mentioned in the report, both the investors are large business groups having their presence in media and broadcasting.

"One of the interested buyers is an Indian conglomerate, while the other is an international corporation," the report said, citing the sources.

The report said that if the deal takes place, it could threaten promoter Subhash Chandra’s control over the firm. Chandra too is in negotiations with VTB to buy back the shares, the report added.

“VTB could sell the entire stake in one go or through multiple deals over a period of time," one of the two people was quoted as saying in the report. “If it chooses to do the latter, then it will pull Zee Entertainment’s share prices further down and this, in turn, can have a domino effect on other lenders, who also own pledged shares of Zee Entertainment."

Another source said that the sale could expose Zee to hostile takeover bids.