InvestorQ : With Zee TV selling its stake to Comcast what is the future of Zee TV now and will the FMPs get repaid by the mutual funds?
Dhwani Mehta made post

With Zee TV selling its stake to Comcast what is the future of Zee TV now and will the FMPs get repaid by the mutual funds?

Answer
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Khushi Patel answered.
1 year ago


Firstly, the Zee buying by Comcast is only in discussion stage at this point of time and no deal has been finalized. It has been reported that Comcast may put in a bid for the promoter holding in Zee Entertainment along with Blackstone of the US.

The only big issue for the stock could be the pricing and valuation. For example, at the current market price, half of the Subhash Chandra stake can fetch around Rs.6700 crore. But, the stock has already corrected around 40% since the FMP issue broke out and therefore the promoters must be looking for a premium to cede control of the company.

In fact, markets experts are already commenting that the valuation could be the biggest roadblock to the deal as the Essel Group outstanding debt is quite large and very little could be recoverable for that.

So as far as y our question in FMP is concerned, one can really talk about that only after we know the valuation that Chandra gets for his stake in the company.