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29
January 2019
 |
| Current Position (The Total Investment & Insurance Solutions) |
The
massive plunge in Zee Entertainment Enterprises Ltd (ZEEL) stock last week
following a media report which said that Zee promoters Essel Group was involved
in money laundering has had a fallout in the quick resignation of an
independent director of the group company Zee Media Corp.
Zee
Media Corp has informed stock exchanges that one of its independent directors,
Vishwapati Trivedi, who was appointed to the post as recently as January 24,
resigned on January 27, citing the recent upheavals impacting the company.
"This
is to inform you that Vishwapati Trivedi, an Independent Director appointed
with effect from January 24, has informed the Company that the recent
developments at Essel/Zee group, especially the big upheaval in the market and
unprecedented fall in the share value coupled with media reports and Subhash
Chandra's open letter (of which he was not aware before appointment), had left
him perturbed and amazed and considering that he will not be able to contribute
in such turbulent times, he would like to resign as Director of the Company
with effect from January 27, 2019," the filing said.
On
Friday, after a media report said that the Zee promoter Essel Group was
involved in money laundering in the aftermath of the November 2016
demonetization, the shares of the company's entertainment arm tanked over 30
per cent and the firm suffered a market capitalisation loss of Rs 14,000
crore.
In an
"open letter" on Friday, Zee and Essel Group Chairman Subhash Chandra
apologized to bankers, NBFCs and mutual funds for "not having lived up to
their expectations" and being in debt due to the failure of multiple
infrastructure projects and said that he intended to pay back the loans through
the sale of his promoter stake in ZEEL.
ZEEL on
Sunday clarified that it has no connection with any of the transactions said to
have been carried out by its promoter Essel Group, as alleged in the media
report.
In
another release late on Sunday, the Essel Group said that its management had
successfully arrived at an understanding with lenders to whom the shares held
by the group's promoters have been pledged.
On
Monday, massive buying by US-based foreign portfolio investor Discovery Fund as
well as news of the deal with lenders lifted stock prices of Zee Entertainment
by 16.6 per cent.The Total Investment
& Insurance Solutions
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