The promoters plan to pursue disruptive technological development and transform the business into tech-media by divesting the stake.
The promoters of Zee Entertainment Enterprises will sell up to 50 percent of their stake in the company to a strategic partner.
In a filing with the exchange, the promoters cited plans "to pursue disruptive technological development and transform the business into tech-media".
The promoters Subhash Chandra and family recently met advisors in Mumbai for a strategic review of the businesses in view of the changing global media landscape and technological advancements such as AI, lOT, 3D printing AR, VR, among others.
A strategic review of Essel's shareholding in Zee will also be undertaken with a view to maximise value for the business.
The proposed transaction to divest up to 50 percent of Essel's holding to a strategic partner, is expected to address the Essel Group's capital allocation priorities and will provide value for shareholders of Zee.
As of September 2018, the Essel Group held roughly 16.5 percent stake in Zee; Essel Corporate LLP held 4.13 percent, Essel Media Ventures 10.71 percent, Essel International 1.47 percent and Essel Holdings held 0.18 percent.
Essel will appoint Goldman Sachs Securities (India) as their investment banker and the US and European LionTree as an international strategic advisor for this exercise.Essel expects the outcome of the strategic review to conclude by March/April 2019.