The Hindu Business Line : ‘Ushodaya deal still on’

Hyderabad, Feb. 2 The Blackstone group seems to have decided to stay the course with its investment proposal with Ushodaya Enterprises Ltd, the Ramoji Rao-promoted company that owns Eenadu.

“The deal is very much on,” sources in the private investment firm told Business Line.

When asked about the speculation that Blackstone might back out from the $275-million deal, the sources said the private investment firm had not taken any decision to pull out from the deal.

Under the agreement with Blackstone entered into January 2007, the Hyderabad-based UEL expected to raise a total of $465 million, including the Blackstone investment. The remaining amount was to be raised through financing by banks.

However, the deal, though cleared by Foreign Investments Promotion Board hit a roadblock following strong opposition by Mr Undavalli Arunkumar, the Congress MP.

The deal now awaits the nod from the Union Finance Ministry. Asked why it took so long while it could complete investments in other instances, the sources said the size of the deal warranted more time.

“We are keen to go ahead with the deal. It, in fact, is over due,” they said.

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