Zee likely to announce deal closure before July 31 deadline

Subhash Chandra-led Zee Entertainment is racing against time to announce a deal closure before the July 31 deadline set by mutual funds. Mutual funds, which have an exposure of Rs 6,300 crore to the Essel Group, have set a deadline of July 31 for the promoters to conclude a stake sale, failing which they will be forced to sell shares of Zee.
Some of the fund houses having significant exposure to Essel Group told FE that they expect the company to conclude the stake sale by July 31, and if that does not happen, they would be forced to sell the shares. In its earnings call on Tuesday, MD & CEO of Zee Entertainment Punit Goenka said the firm has received a binding offer and it is likely to receive a second offer in the next few days. Sources close to the development claim that deal is likely to be announced early next week.