Media baron Subhash Chandra-led Essel Group is looking to sell up to half of its stake in Zee Entertainment Enterprises Ltd to a strategic partner.
The media company said in a stock-exchange filing on Tuesday the promoter Essel Group plans to sell the stake as part of a “strategic review of its businesses in view of the changing global media landscape”.
Promoter group companies held a stake of 41.62% in Zee Entertainment at the end of September, stock-exchange data showed. Public shareholders owned the remaining.
According to the filing, Essel expects the proposed transaction to address its capital allocation priorities.
Essel has appointed Goldman Sachs Securities (India) Ltd as its investment banker and US- and Europe-based LionTree as an international strategic adviser for this exercise.
The outcome of the strategic review is likely to be concluded by March/April 2019, the company said.
According to the filing, Essel feels that the review is necessary to pursue disruptive technological development and transform the business into a tech-media company.
The strategic review underscored the importance artificial intelligence, Internet of Things, 3D printing and other technological advancements.
“There is informed recognition that the world is convergent today and the lines across media, telecom, manufacturing and technology are thinner than ever,” it said.
These developments will impact virtually all businesses across sectors and business practices will be driven by technological innovation. The review showed that the family needs to accelerate efforts to stay ahead of changing trends, the filing said.