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Zee Entertainment Eyes Music Unit Sale for Cash Boost
18 Jul
Summary
- Zee Entertainment is considering selling a 49% stake in its Music division.
- The company aims for a valuation of approximately ₹6,000 crore for Zee Music.
- This move seeks to increase the company's current cash reserves of ₹3,000 crore.
Zee Entertainment Enterprises Ltd. is exploring the sale of a 49% stake in its Music division, Zee Music. This strategic move is intended to bolster the company's cash reserves, which currently stand at around ₹3,000 crore. The market capitalization of Zee Entertainment is just over ₹10,000 crore.
Sources indicate that Zee Entertainment is aiming for a valuation of approximately ₹6,000 crore for Zee Music. A mix of strategic investors and Private Equity firms are anticipated to show interest in this proposed stake sale.
The company's board is likely to discuss the carve-out of the Music business at its next meeting, though an official date has not yet been announced. This comes after the board approved a preferential issue of warrants to promoters to raise up to ₹3,143.5 crore, subject to shareholder approval.
Shares of Zee Entertainment have seen a slight increase, trading higher after an earlier gain. The company has been contacted for an official comment on these developments.
