Zee Entertainment’s promoter eyes 50% stake sale
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Rebecca Hawkes
| 13 November 2018

Subash Chandra’s Essel Group is considering the sale of up to 50% of its stake in Indian media giant Zee Entertainment Enterprises to a strategic partner.

The group’s promoters cite plans “to pursue disruptive technological development and transform the business into tech-media” in a filing to the Bombay Stock Exchange.

With a growing audience currently comprising 1.3 billion TV viewers and nearly 50 million digital viewers, Zee Entertainment is well placed to benefit from market trends due to its strong brand and range of domestic and international channels, the Essel Group said.

The “right global strategic partner” will, however, help in transforming Zee Entertainment further and “maximise long term value”, the company said. “It will transform it into a global media-tech player with a unique offering of content to the main stream audiences in 170 plus countries”.

The right partner will take Zee Entertainment “to the world and help us transform from a pure content company to a content technology company that can ensure we are able to compete in this rapidly evolving digital world,” according to CEO Punit Goenka.

Zee’s parent Essel, one of India’s most prominent conglomerates, is reviewing its business assets against a changing global media landscape and technological advancements such as AI, lnternet of Things, 3D printing, augmented reality and virtual reality.

Investment banker Goldman Sachs and international strategic advisor LionTree have been appointed by Essel chairman Subash Chandra and his family as part of a strategic review to be concluded by March or April 2019.

As of September 2018, the Essel Group held a stake of around 16.5% in Zee; Essel Corporate LLP held 4.13%, Essel Media Ventures held 10.71%, Essel International held 1.47%, and Essel Holdings held 0.18%.

Whatever the outcome of the review, Essel said the family will continue to invest in growth opportunities in India, and contribute to Zee in “every possible way going forward”.