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India: CCI approves US$1.5B buyback of Oyo shares by founder

 |  September 17, 2019

The Competition Commission of India (CCI) has approved a buyback of shares worth US$1.5 billion sought by Oyo founder Ritesh Agarwal along with an additional US$500 million investment, according to a report by Economic Times.

Agarwal will be buying back partial stakes of early investors Lightspeed Venture Partners and Sequoia India.

Agarwal told the publication that the proceeds from the buyback will be used by the hospitality company to maintain its leadership position in India and China, strengthen Oyo’s footprint in Southeast Asia, the Middle East, and its business in Europe and the US.

After the buyback, Agarwal’s stake in Oyo is expected to increase to 30%, making him the second-largest stakeholder. Japan’s SoftBank Vision Fund is the largest stakeholder with 48%. It cannot increase its stake in Oyo beyond 49.9% without the approval of Greenoaks Capital, Lightspeed, Sequoia, and Agarwal, the report pointed out.

Full Content: Economic Times

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