Blackstone sells 23% stake in Essel Propack in block deal worth Rs 1,860 crore

Blackstone sold 23 percent stake in Essel Propack to a clutch of investors, including Axis Mutual Fund, DSP Mutual Fund, Franklin Templeton Mutual Fund, Morgan Stanley, Neuberger Berman, Nomura and others, for a little more than Rs 1,860 crore via open market.

The sale was carried out through Blackstone’s entity Epsilon Bidco in a block deal on September 18. Average share price was Rs 256.5, valuing the transaction at Rs 1,861.68 crore.

The American buyout firm sold 72,580,090 shares in Essel Propack which is one of the largest manufacturers of laminated tubes used by pharmaceutical and fast moving consumer good (FMCG) companies.

Blackstone’s holding in the 37-year-old company has now reduced to 52 percent from the 75 percent acquired in 2019 for Rs 3,211 crore.

Essel Propack is run by Ashok Goel, younger brother of Subhash Chandra – promoter of troubled Essel Group. It employs 3,150 across 20 facilities in 10 countries.