New York based company to also get representation on UEL Board
Hyderabad, January 28, 2007Global Private Investment and advisory firm, Blackstone Group and its affiliates are expected to acquire stake in Hyderabad based media company Ushodaya Enterprises Limited (UEL) with over $465 million. UEL’s board of directors has approved an agreement under which Blackstone is expected to acquire a stake in the UEL with representation on the board.
As a part of the deal, UEL expects to raise $465 million comprising $275 million investment by Blackstone and $190 million of bank financing. The transaction is subject to regulatory approval by Foreign Investment Promotion Board and the Ministry of Information and Broadcasting.
Reacting the development, Ramoji Rao, Chairman of UEL said that the company had access to several financing options, including an IPO. They decided to go with Blackstone. He said that they believe that at this stage of company growth as the company has an opportunity to create significant value by leveraging Blackstone’s outstanding experience and record of accomplishment in the global media sector.
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