Summary:
By Express News ServiceNEW DELHI: Subhash Chandra-led Essel Group is set to see its stakeholding in its flagship media unit Zee Entertainment Enterprises Ltd (ZEEL) crash to just 5 per cent. The debt-ridden group, which has been trying to raise enough cash to settle its dues to financial creditors, announced on Wednesday that it was planning to sell 16.5 per cent of ZEEL to a group of financial investors. The transaction will send Essel’s stakeholding in ZEEL to just around 5 per cent, of which 1.1 per cent are pledged to creditors. The sell-off puts in doubt whether the Subhash Chandra family, the original promoters of Zee, will be able to maintain management control over the firm post promoter equity dilution. However, when the promoters’ equity dips below 5 per cent, it may be difficult to retain management control..