Monday, December 18, 2006

Zee Telefilms to raise up to Rs 900 crores via equity sale

Zee Telefilms is hitting the capital markets again. The company intends to raise around $200 mn (Rs. 900 crores) by diluting equity capital in two of its subsidiaries, 10% of Dish TV and 15% of Wire & Wireless India (WWIL), to part-finance expansion plans as a part of an ongoing restructuring programme. Zee plans to raise the money to acquire new customers and buy last-mile connectivity. The two companies are scheduled to be listed in February. Dish TV and WWIL are expected to raise Rs. 400 crores and Rs. 500 crores, respectively. The fund generation suggests a valuation of Rs. 4, 000 crores and Rs. 3, 000 crores for Dish TV and WWIL, respectively. The Bombay High Court has approved the de-merger of cable undertaking of Zee Telefilms into WWIL and the regional and news broadcasting undertaking into Zee News Ltd. ZTL would start trading from December 18 as the de-merged entity, to be renamed Zee Entertainment Enterprises.

For more details, read the article from The Economic Times.

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