Independent News and Media has received formal, statutory approval from the Indian government for the purchase of 26% of newspaper publisher Jagran Prakashan Private for €27.3m.
JPPL is the publisher of the Hindi-language newspaper, Dainik Jagran, which sells over two million copies a day. The newspaper has been established for 63 years and is the largest read newspaper in India. It publishes 25 editions from 25 printing centres across India.
The newspaper group's remaining 74% shareholders are members of the founding Gupta family. The funds for the deal will be financed from Independent's existing cash balance and is expected to be earnings enhancing immediately.
The deal approval came after recent changes to India's foreign ownership legislation in the media sector. The deal had needed approval from both the Ministry of Information and Broadcasting and the Indian Foreign Investment Promotions Board.
'We are delighted that our new theatre of strategic investment, India, has finally been made possible by these approvals,' commented INM's Chief Executive Tony O'Reilly.
'The Indian market remains the most exciting and fastest growing media markets in the world, and we are naturally pleased to be able to partner in such a distinguished and growing title as Dainik Jagran,' he added.
Independent News and Media sharesclosed three cent higher at €2.58 in Dublin this evening.
