Blackstone, the world’s largest leveraged buyout firm, is close to scrapping its PE deal for Hyderabad-based media group Ushodaya Enterprises, owners of Telugu publication Eenadu, according to sources familiar with the situation.
The PE giant had recently reduced the size of its original $275-million deal for picking a 26% stake in Ushodaya, announced in January 2007, as it was not receiving the mandatory clearance from the Foreign Investment Promotion Board (FIPB) and the Cabinet Committee of Economic Affairs (CCEA). Blackstone had subsequently reduced the size of the proposed deal and under the revised terms, it was looking to acquire a 14% stake for Rs 590 crore or a little less than $150 million in Ushodaya Enterprises.
As per the process followed by the Indian government, the proposed investment by Blackstone now awaits final clearance from the finance minister, which is usually just a formality after the FIPB gives its green signal. Sources say despite the imminent clearance, Blackstone is likely to pull out of the transaction.
Read more in The Economic Times article.
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Blackstone scales down investment in Ushodaya
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