April 22, 2019 / 12:38 PM / 3 months ago

Blackstone buys majority stake in Indian packaging firm Essel Propack

(Reuters) - U.S.-based Blackstone Group agreed to buy a 51 percent stake in Essel Propack Ltd, India's largest rigid plastic packaging provider said here 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 here 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 favorable for aggressive purchases.

Reporting by Chandini Monnappa in Bengaluru; Editing by Shreejay Sinha

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