Mumbai, India; July 24, 2003 – Promoters of Essel Group have placed 12,375,000 shares (3.0% of the equity share capital) of Zee Telefilms Limited (Zee) out of their personal holding with Foreign Institutional Investors. These proceeds will be used to pay dues to both Zee and Essel Propack Limited (EPL). This amount will clear the dues from the promoters to both EPL and Zee.
The Institutional Investors who have purchased these 12,375,000 shares are well-known international investors keen on Indian media and entertainment stocks with a long-term perspective.
“Zee Telefilms Limited is going to receive the entire remaining dues”, announced Mr. Subhash Chandra, Chairman, Essel Group of Companies. “In my interaction with shareholders, I had made a commitment of repaying the dues of BFPL, at the earliest”, he added
The only dues outstanding from promoters to Zee were advances outstanding from Buddha Films Pvt. Limited (BFPL). Though these were business losses of Zee on account of marketing of cricket rights, the promoters of Essel Group had taken it on their own books. With this placement, the outstanding of promoters towards Zee would be paid off.
“We are happy to have as our shareholders, Institutional Investors who have a long-term perspective about the Company’s future prospect and growth”, said Mr. Chandra. “Essel Group has also taken a conscious decision to concentrate on media, entertainment and information led businesses”, elaborated Mr. Chandra.
Placement of these shares re-establishes that the promoters of Essel Group will always stand by their commitment towards delivering real, sustainable shareholder value.
This placement was done by Enam Securities, pursuant to a mandate given to them a week ago.