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Oppenheimer Funds set to pick Zee Entertainment stake

Wednesday, July 31, 2019, 11:07
This news item was posted in Business category and has 0 Comments so far.

Mumbai: Oppenheimer Funds are set to pick up a minority stake of around 11% at around Rs 400/share in Zee Entertainment, ending months of negotiations, said sources aware of the development. The Oppenheimer offer is believed to be better than the Comcast led consortium’s offer of Rs 350/share, they add. On Wednesday mid day, the Zee Entertainment was trading at Rs 361/share. An announcement is expected later today. The promoters of Zee prefer a financial partner since the trade will be faster and they retain control of their flagship. “The issue is if this solution will solve the liquidity problem that the Essel Group is facing. Also it’s interesting that a public market focussed fund will pay a premium to market price,” said an official.Mails sent to See spokesperson did not generate an immediate response. Oppenheimer could not be contacted immediately. The promoters led by Subhas Chandra owns 35. 79% of Zee Entertainment of which 64% is pledged to financial institutions. Essel Group owes Rs 7000 crore to mutual funds and need to sell a stake by September to avoid a default.Founded by Leon Levy, Oppenheimer Funds is among the largest asset management firms globally managing $213 billion of assets as on end 2018.

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