Promoter family to increase stake in Zee to 26% eventually: Subhash Chandra

The promoter family of Zee Entertainment Enterprises Ltd is looking to raise the stake in the company by 5 per cent soon and eventually take it up to 26 per cent, Subhash Chandra, chairman emeritus of the company, said in an interview on Monday.

"I've personally encouraged both my immediate and extended family to increase their holdings in Zee," Chandra said in an interview with The Economic Times (ET), hinting that they may not raise funds from outside to fund the buying.

"I've also approached my younger son, Amit Goenka, a successful NRI and he has agreed to invest in Zee instead of other companies," he added.

Chandra also said that as a promoter, he was "seriously considering" filing a criminal case against Sony. "If I were the CEO of the company, I would have sued them already," he said, adding that it was the Japanese company's "criminal design" to start the merger process and then withdraw.

Earlier this month, Culver Max Entertainment, the owner of Sony, called off the $10 billion merger agreement it had signed two years ago with Zee. The company had also sought $90 million as the termination fee from Zee on alleged breaches of the contract.

Sony was reportedly unhappy with the ongoing regulatory probe against Zee Chief Executive Punit Goenka, who was to lead the merged entity. Later, Zee said that it "categorically denies" all the allegations.

Both companies have moved to court against each other.

In the interview, Chandra said that Goenka's stepping down was discussed within the family last year and "Punit and the family collectively decided he should step aside". The decision, he said, was communicated to Sony, but it wasn't acceptable to Sony.

"I believe this was Sony's strategy all along to engage with Zee and eventually withdraw, portraying Zee as vulnerable," he said.

Chandra added that in the case it has filed against Sony, it will be demonstrated that Zee has met most of the conditions and prerequisites.