Zee Entertainment approves share buyback worth Rs 6000 million at Rs 91 per share

Mumbai: Zee Entertainment Enterprises Ltd. (‘Z’) continues to strengthen its strategic growth levers by enhancing the core capabilities and undertaking significant efforts to further align shareholder interests with its long-term growth ambitions. The Company and its Board of Directors have taken continued efforts to evaluate avenues that can further enhance shareholder returns. The Board of ‘Z’, in a meeting conducted today, approved a proposal for the buy-back of upto 65,934,065 equity shares of the Company of face value of Re. 1/- per equity share, at a price of Rs. 91/-, aggregating upto Rs. 6000 million. The Company will implement the buy-back through the tender offer route, further reaffirming its potential and abilities to drive higher value-creation in the longterm.

The decision by the Board follows a comprehensive review of the Company's financial strength, free cash flow and business outlook, with a view to enrich the value-creation journey for all stakeholders. The Board unanimously arrived at the proposal for buy-back of equity shares after a thorough deliberation of other key routes and the feedback shared by investors and shareholders. The Board recognized the buy-back as an optimal approach to reward the shareholders, as well as reinstate confidence in its fundamentals and strategic roadmap for the future.  

The buy-back of equity shares represents 6.86% of the total paid up equity share capital of the Company. The Board has also noted the intention of the Promoters and members of the Promoter Group to not participate in the proposed buy-back. Commenting on the Board’s decision, R. Gopalan, Chairman, Zee Entertainment Enterprises Ltd. said, “The Board remains firmly committed to safeguarding the interests of all shareholders and ensuring that the Company's capital is deployed in a prudent and value-accretive manner. The decision to approve the buy-back of equity shares reflects our confidence in the Company’s potential and fundamental strength to capitalize on the opportunities in the future. The Board believes that the Company's intrinsic value is not appropriately reflected in its current market valuation, and the buy-back represents a prudent opportunity to reinforce confidence in the Company’s capabilities to generate long-term value for shareholders. The Board conducted a detailed assessment of the Company's financial position, growth plans and shareholder expectations. The management also presented to the Board an approach being taken for medium to long-term growth of the Company to strengthen its topline and bottomline."

Speaking about the strategic efforts undertaken by the Company, Punit Goenka, Chief Executive Officer, Zee Entertainment Enterprises Ltd. added, “The Company has implemented significant steps to enhance its capabilities, sharpen the strategic focus across content, digital and emerging growth opportunities and drive operational efficiencies. ‘Z’ remains on a firm growth trajectory and the Board's approval on the buy-back of shares further reflects the immense potential of the Company and its robust capabilities to capitalize on the opportunities ahead. As we continue to execute our strategic priorities with discipline, we remain committed to delivering sustainable growth and creating long-term value for our shareholders."

The Company offers dividends even amidst a challenging macro-economic environment and evolving industry dynamics. In parallel, the Company has continued to align its growth ambitions with the interests of its employees through initiatives such as the ‘Truly Yours’ Employee Stock Option Plan, designed to foster a stronger culture of ownership and enable employees to participate in the Company's long-term value-creation journey.

As the Company continues to progress on its targeted growth path to garner a higher share of the Attention Economy, the buy-back of equity shares will enable it to take the right measures to enhance shareholder returns. The Board believes that higher levels of stakeholder trust and confidence will also complement the Company’s focus on further strengthening its core businesses, accelerating digital growth, leveraging technology-led innovations across platforms and unlocking newer monetization avenues by tapping into highpotential segments.