The promoters of Zee Entertainment Enterprises (ZEE) have zeroed in on three companies to sell half of their holding in the entity, according to three persons with direct knowledge of the development.
The three companies include Sony Pictures, which owns rival broadcast business Sony Pictures Networks India (SPN), a US-based media conglomerate, and a Chinese company.
It is learned that ZEE promoter Subhash Chandra, who is also chairman of the company, had discussions on the proposed stake sale in the UK and the US. “Chandra has had extensive meetings and discussions to sell half of his holding in ZEE. There are three final players in the ring,” said one of the sources.
A ZEE spokesperson said the company’s discussions pertaining to the stake sale with the prospective partners are on and the progress is extremely positive. “At this stage, we do not wish to comment on the name of the prospective partner. Once the deal is at an advanced and closure stage, we will certainly announce the relevant details.”
When asked about the development, NP Singh, chief executive of Sony Pictures, called it speculation.
Top Sony officials like Mike Hopkins, chairman of Sony Pictures Television, and Tony Vinciquerra, chairman and CEO of Sony Pictures Entertainment, visited Chandra and his family at his residence after Chandra on November 13 last year announced to sell half of the promoter holding in ZEE to a global strategic investor. The promoters own 41.6% stake in the company.
Punit Goenka, MD and chief executive of ZEE, had later told ET that his first preference was a company which was not present in India, preferably from tech or internet background. “We don’t need any money for the South Asian business. We need somebody to take us to the global markets,” he had said.
ZEE is India’s largest entertainment business by market cap and is looking for a partner to compete in a market prone to major technological disruptions.
ET had earlier reported that China’s Tencent and Alibaba and American telecom giant Comcast Corp were among those which have been approached by Goldman Sachs, investment banker for the promoters.
Comcast has been looking out for opportunities in India and had a failed bid to acquire 21st Century Fox from Rupert Murdoch.
Source: Economic Times