Wall Street major Blackstone in exclusive talks to acquire majority stake in ASK Group

US-based private equity (PE) firm Blackstone is reportedly in exclusive talks to buy a majority stake in asset and wealth management company ASK Group, which is backed by rival PE player Advent International. 

The proposed transaction will value the ASK Group at around $1 billion. After the submission of binding bids by several suitors, Blackstone "has entered exclusivity for buying a controlling stake of up to 74% in ASK Group," a source told Moneycontrol, adding that the joint stake sale split between Blackstone and the company's founders couldn't be ascertained immediately.

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As per reports, Advent International had bought a stake of around 40% in ASK Group in 2016 for $130 million, valuing the latter at $325 million back then.

"There are other players including private equity funds in the fray, but as of now Blackstone seems to be in the pole position, and if talks progress smoothly, the transaction is likely to be signed in September 2021," another source told the publication.

In the past decade, Blackstone has invested more than $22 billion in the country and some of its existing investments include Mphasis, (its largest investment so far-- $2 billion already invested and an additional $2.8 billion commitment), Nexus Malls, edutech player Aakash, the largest specialty glass packaging maker Piramal Glass ($1 billion), global leader in recyclable packaging tubes Essel Propack, and largest independent affordable housing finance company Aadhar, Prestige commercial and retail portfolio for $1.6 billion among others.

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That apart the Wall Street major has two REITs, making it the largest owner of office, real estate and a leading player in the retail and logistics space. 

Last year, the American alternate investment management giant had launched Asia's largest and the country's first two REITs. India is the most successful investment destination for the firm. The company anticipates investing more in the next 10 years.

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