Essel Corporate to acquire 1.15% stake in Zee Entertainment for Rs 6.1 bn

Photo: shutterstock

Essel Corporate LLP plans to acquire 11 million shares, or 1.15 per cent stake, of Zee Entertainment Enterprises (ZEEL) from another promoter group entity at an estimated price of over Rs 6.1 billion.

Essel Corporate will buy the stake from Essel International.

Post completion of the transaction, Essel Corporate's stake in ZEEL will be 2.63 per cent.

"Essel Corporate LLP (formerly known as Allore Enterprises LLP) propose to acquire 1,10,00,000 shares of ZEEL on July 26, 2018, or any day thereafter within a period of 90 days by way of on-market inter se transfer of shares amongst the promoter group," Essel Corporate said in a regulatory filing.

Essel Corporate said shares are proposed to be acquired at the prevailing price on the date of acquisition.

However, it added that the acquisition price would not be more than 25 per cent of Rs 554.87 per share, which is the weighted average market price for a period of 60 trading days preceding its notice issued on Friday.

At the indicated price, the transaction is estimated to be around Rs 6.1035 billion.

After the proposed transaction, Essel International's stake in ZEEL will be 1.25 per cent.

Shares of ZEEL were trading at Rs 516.15 apiece, down 0.84 per cent on BSE.