Sage to buy out Indian partner
US SPECIALITY publisher Sage Publications is buying out its partner, Tejeshwar Singh’s 76% equity in Sage India. The $158-m publishing major is picking up the stake through its UK-based arm, converting the publishing house into a fullyowned subsidiary of the US-based parent. An e-mail to the company’s UK office didn’t elicit any response.
However, Mr Tejeshwar Singh confirmed the development, but declined to spell out the deal size. “I am 60 now and due for retirement as per the company policy. So this offer couldn’t have come at a more opportune time and the deal worked out amicably,” he told ET.
According to him, Sage India will benefit from the new agreement as the parent company is likely to outsource a lot of work to India considering the country’s low cost structures.
In addition, Sage India will start focusing on reference books and text books. Mr Singh will step down from the day-to-day operations of the company he helped set up 25-year-ago. Instead he will become the non-executive chairman of the company. Mr Vivek Mehra will succeed him as the company CEO. Sage India expects to close the current fiscal with Rs 16 crore in revenues.
The current policy allows 100% FDI in publishing of speciality journals, periodicals subject to the approval of the Foreign Investment Promotion Board and meeting the guidelines issued by the ministry of information & broadcasting.Sage India publishes 21 journals falling in this category. The company has approached the ministry for necessary approvals.
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Sage India will benefit from the
new agreement as the parent company is likely to outsource a lot of work to India, considering the country’s low-cost structures
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