MUMBAI: With speculation rife over the stake sale of Zee Entertainment Enterprises Limited (ZEEL), MD and CEO Punit Goenka on Tuesday suggested that the company was inching closer to ink the high-profile deal.
Goenka revealed that the media and entertainment conglomerate now has one binding offer with them, and expects another one to come in the next few days. Goenka had earlier stated that the stake sale would be completed by July .
“I accept that we have received two non-binding term sheets. Out of that we now have one binding offer with us, we are expecting to receive another binding offer over the next few days. Once both the offers are on the table the family will evaluate and take a decision,” Goenka said during an earnings call after the Q1 result for FY20.
ZEEL reported 13.3 per cent year-on-year growth, with total revenue standing at Rs. 20,081 million. The company highlighted domestic broadcast and digital business as growth driver for the strong performance.
ZEEL’s advertising revenue also witnessed a 3.6 per cent year-on-year growth. In Q1 FY20, the advertising revenue was at Rs. 11,867 million. While domestic advertising revenue grew by 4.2 per cent year-on-year to Rs. 11,322 million, international advertising revenue for the quarter was Rs. 545 million.
Goenka, however, did not reveal any information about the nature of the deal. He also added that it is now a matter of days before ZEEL makes a formal announcement on the stake sale.
Goenka also clarified that ZEE Media cannot be part of any stake sale process because of the FDI norms that exist in that sector.
“On the offer on stake sale, I am expecting the second offer to come in a matter of days. If that offer was not to come in, then we will be of course going with the binding offer that we already obtained. But I am quite hopeful that the second offer will also come in,” he commented on the timeline of the second binding offer.
In November last year, ZEEL had revealed the decision of its promoters to sell up to 50 per cent of their equity in the company to a strategic partner.
The objective of the stake sale was to transform Zee into a global media tech player. In the last few months, a slew of big companies have rumoured to have shown an interest in picking up a stake in one of India’s most iconic companies.
