De Shaw to pick up 18% in Amar Ujala for Rs 117 cr

NEW DELHI: De Shaw, one of the world’s largest hedge funds, is picking 18% stake in north India-based media house Amar Ujala Publications. The hedge fund with global aggregate investment capital under management of $25 billion, would pick equity in both Amar Ujala Publications and its printing company in a deal worth Rs 117 crore.

According to sources, DE Shaw would pick 18% stake in Amar Ujala Publications through a preferential allotment for a cash consideration of Rs 58.5 crore. In addition, it would pick 18% stake in A&M Publications, the printing unit of the media house for a similar consideration of Rs 58.5 crore. The transaction values the two entities at about Rs 650 crore cumulatively.

Amar Ujala Publications is presently a closely-held company engaged in the business of publishing and printing the Hindi newspaper Amar Ujala. The publication was recently undergoing a battle for control between the shareholders.

The newspaper is circulated in north Indian states of Uttar Pradesh, Uttaranchal, Jammu & Kashmir, Punjab and Himachal Pradesh. A&M Publications, which prints newspapers exclusively for Amar Ujala Publications is promoted by the Amar Ujala Group. Both Amar Ujala Publications and A&M Publications have crossholdings in each other of 35.33%.

When contacted by ET, a DE Shaw spokesperson, replied: “We do not normally comment on specific investments we may or may not have.” An e-mail sent to Amar Ujala last month did not elicit any comment.

This would mark yet another investment from DE Shaw in India. Early this month, the New York-based investment and technology development firm had invested $8 million in Amtek India —- group company of auto component maker Amtek Auto —- through a preferential allotment of shares.