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Mumbai Jan. 29 The Blackstone group, a global private investment firm, will be picking up stake in Ushodaya Enterprises Ltd (UEL), which owns the Eenadu newspaper.

As part of the transaction, UEL expects to raise $465 million, comprising $275-million investment by Blackstone and $190 million of bank financing. No other terms of the deal were disclosed.

The transaction is subject to regulatory approval by the FIPB and the Ministry of Information and Broadcasting.

Kotak Investment Banking acted as the sole investment banking advisor to the transaction.

The Ramoji Group, parent company of UEL, owns Ramoji Film City. Mr Ramoji Rao, Chairman of UEL, said: "The company had access to several financing options, including an IPO, but we decided to go with Blackstone because we believe that at this stage of our growth, we have an opportunity to create significant value by leveraging Blackstone's experience and track record in the global media sector."

Mr Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Private Ltd, said: "We believe that the Indian media sector will be a key beneficiary of a secular trend in growth in personal consumption that is driving India's economic expansion, which in turn will spur advertising growth."

He added: "Importantly, we believe that UEL is an ideal platform for Blackstone to play this highly attractive sector in India."

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