Global buyout major Blackstone Monday announced acquisition of a majority 51 percent stake in the troubled Essel group arm Essel Propack for over USD 460 million or about Rs 3,200 crore.
The American fund has entered into a definitive agreement with Ashok Goel Trust, which owns 57 percent in Essel Propack, the company said.
The private equity fund will pay a purchase price of Rs 134 a share to acquire a 51 percent shares from the holding trust, and intends to purchase additional 26 percent through an open offer at Rs 139.19 a share, it said.
Post-deal Ashok Goel will retain a minority stake in the company, it added.
The 37-year-old Essel Propack employs over 3,150 in its 20 facilities spaning 10 countries, and manufactures 7 billion packaging tubes annually which are mostly used by the FMCG industry.
Ashok Goel's brother Subhash Chandra, the chairman of the Essel group, is passing through financial difficulties due to some bets taken on asset-heavy new businesses have gone awry, and is also looking at selling a part of his flagship media and entertainment business to pay back the lenders.
Essel Propack scrip closed 0.91 percent up at Rs 132.65 on the BSE, as against a 1.26 percent plunge in the benchmark.