Blackstone set to acquire majority stake in Essel Propack

Blackstone, one of the world’s leading investment firms, has entered into definitive agreement with Ashok Goel Trust to purchase majority stake in Essel Propack Limited (EPL), which is a leading speciality packaging player and the largest global manufacturer of laminated tubes.

Ashok Goel Trust and its affiliates currently hold ~57 per cent stake in EPL. Blackstone will pay a purchase price of Rs 134 per share to acquire a 51 per cent shareholding from Ashok Goel Trust. Thus, post this transaction, Ashok Goel will retain a minority stake in the company. The sale is expected to be completed in the coming months, subject to customary closing conditions and approvals.

As per the Takeover Code in India, this transaction will lead to a mandatory open offer for the purchase of additional 26 per cent shares of the company. The open offer price has been fixed at Rs 139.19 per share. Based on the open offer subscription, the purchase price consideration will vary between Rs 2,157 crore and Rs 3,211 crore.

Morgan Stanley acted as the exclusive financial advisor to the sellers and its affiliates. PWC, Khaitan & Co and Baker McKenzie acted as advisors to sellers and its affiliates. KPMG, Trilegal and Simpson Thacher & Bartlett acted as advisors to Blackstone.

On Monday, the stock of Essel Propack closed at Rs 132.65, up by 0.91 per cent from its previous close of Rs 131.45 on the BSE. The stock made an intra-day high of Rs 134.50.