Blackstone buys majority stake in Indian packaging firm Essel Propack (updated)
22/04/2019 15:29
(Adds open offer details)
April 22 (Reuters) - U.S.-based Blackstone Group BX.N
agreed to buy a 51 percent stake in Essel Propack Ltd ESSL.NS ,
India's largest rigid plastic packaging provider said https://www.nseindia.com/corporate/SURJE_SINGH_22042019172429_SE_Letter_378.pdf
on Monday.
Blackstone will buy the stake from the Ashok Goel Trust at
134 rupees per share, representing a premium of 1.1 percent over
the company's Monday closing price.
Under India's takeover rules, the transaction triggered a
mandatory open offer in which Blackstone, along with Epsilon
BidCo Pte Ltd, offered https://www.nseindia.com/corporate/listcontract1_22042019170103_OPEN_359.pdf
to buy an additional 26 percent stake in Essel for 11.42
billion rupees ($163.92 million).
The total deal value will range from $310 million to $462
million, based on the open offer. The Trust will retain a 6
percent stake in the company, Essel Propack said.
In December, Blackstone Chairman Stephen Schwarzman told the
Economic Times that a reform-oriented government, weak rupee,
bumper exits and new opportunities in bankruptcy and structured
capital services will likely make India favourable for
aggressive purchases. urn:newsml:reuters.com:*:nL3N1YJ2EY
($1 = 69.6700 Indian rupees)
(Reporting by Chandini Monnappa in Bengaluru; Editing by
Shreejay Sinha)
((chandini.m@thomsonreuters.com; +91-82-6749-7919; Reuters
Messaging: chandini.m.thomsonreuters.com@reuters.net))