Zee may sell 20% stake to Sony for ₹13,000 crore

Japanese electronics and entertainment giant Sony Corp. is in advanced talks to buy a stake in Subhash Chandra-controlled Zee Entertainment Enterprises Ltd (ZEEL) and form a strategic partnership, three people aware of the discussions said.

Chandra is looking to sell 20-25% stake in the BSE-listed company that is struggling to raise funds and pay off debt, said the people cited above, requesting anonymity.

They said the entire amount raised through the stake sale would be used to repay promoter debt worth ₹13,000 crore.

The talks have reached the valuation stage, wherein Chandra wants to sell the stake at a premium of about 30%, said the first of the three people cited above. The sticking point could be the quantum of stake Chandra wants to retain in Zee. Essel Group holds a 41.62% stake in Zee, of which more than half is pledged with lenders, according to latest available data.