- US fund Invesco already owns 7.74% shares of G
- Essel Group selling shares and assets to repay debt
- 63.98% shares of Zee Entertainment are pledged with lenders
Mumbai. The US-based Invesco Oppenheimer Developing Markets Fund has agreed to buy an additional 11% stake in Essel Group’s company G Entertainment Enterprises for Rs 4,224 crore. He already owns 7.74% shares of Zee Entertainment. Essel Group gave this information on Wednesday. Invesco has been an investor in Zee Entertainment since 2002.
Essel Group holds 35.79% shares of Zee Entertainment. About 63.98% of the shares have been pledged with the lenders. The promoters of Zee Entertainment had been trying to sell the stake since November last year. By September, Essel Group is selling assets to repay the entire debt. The process of selling some non-media assets is also going on with Zee Entertainment’s stake.
Essel Group chairman Subhash Chandra said in January this year that his company was in financial trouble due to high stakes in the infra sector. The situation became uncontrollable after IL&FS’s debt crisis surfaced. The acquisition of Videocon’s D2H business also weakened Mali. A month later, Zee signed an agreement with the lenders, under which he got time till September to make the payment.