Blackstone acquires 51% stake in Essel Propack
The global buy out major has entered into a definitive agreement with Ashok Goel Trust, which owns 57% in Essel Propack
Published - 22-April-2019
Blackstone Group, one of the largest alternatives asset managers globally, has entered into a definitive agreement with Ashok Goel Trust to purchase 51 per cent stake in Essel Propack Ltd for over USD 460 million or about Rs 3,200 crore.
The private equity fund will pay a purchase price of Rs 134 a share to acquire a 51 per cent shares from the holding trust, and intends to purchase additional 26 per cent through an open offer at Rs 139.19 a share, it announced.
Post-deal Ashok Goel will retain a minority stake in the company, it added.
Essel Propack employs over 3,150 in its 20 facilities spanning 10 countries, and manufactures 7 billion packaging tubes annually which are mostly used by the FMCG industry.
Goel's brother Subhash Chandra, the chairman of the Essel group, is passing through financial difficulties and is looking at selling a part of his flagship media and entertainment business to pay back the lenders.
Chandra had promised to arrange money by the end of September moratorium by selling group assets and pay the lenders their dues. Essel Propack is one of the early ventures of Chandra, and is the Essel group’s cash cow. It is involved in the business of manufacturing laminated plastic tubes, extruded laminated plastic tubes, caps & closures and flexible laminates used in packaging of oral care products, cosmetics, food and pharmaceuticals.For more updates, subscribe to exchange4media's WhatsApp Channel- https://bit.ly/2QUdLCK