Blackstone entered into a share purchase agreement (SPA) on April 22 to buy 51 percent shareholding from the promoters of Essel Propack for Rs 134 per share.
Private equity player Blackstone has entered into a share purchase agreement (SPA) on April 22 to buy 51 percent of Essel Propack (EPL) at Rs 134 per share, the latter today said.
Subsequently, an open offer has been made for 26 percent at Rs 139.19 per share.
The value of the total transaction will come anywhere between Rs 2,157-3,211 crore.
Ashok Goel Trust and its affiliates currently hold around 57 percent of EPL.
Blackstone will limit its share purchase from Essel promoters to ensure the aggregate shareholding in the company including that acquired through the open offer does not exceed 75 percent of the issued and outstanding equity share capital after completion of the transaction. Ashok Goel will retain a minority stake in the company.
Therefore, in case of full acceptance in the offer, Blackstone will acquire 82,058,934 shares of Essel Propack from the public constituting 26.03 percent and 154,373,781 shares from the promoters constituting 48.97 percent of the issued and outstanding equity share capital pursuant to the SPA.EPL's revenue grew 10 percent year-on-year to Rs 2,642 crore in twelve months ending December 31, 2018, compared to industry growth of around 2 percent.