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Last Updated : Apr 23, 2019 09:58 AM IST | Source: Moneycontrol.com

Essel Propack gains 2% as Blackstone eyes majority stake in company

Ashok Goel Trust and its affiliates currently hold around 57 percent of company.

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Shares of Essel Propack added 2.4 percent in the early trade on Tuesday after Private equity player Blackstone announced the acquisition of  majority stake in company.

Blackstone is going to buy 51 percent from promoters of Essel Propack for Rs 134 per share and to make an open offer for 26 percent stake for Rs 139.19 per share, company said in BSE filing.

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 company.

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.

Ashok Goel, Chairman and Managing Director of Essel Propack told CNBC-TV18 that the company is doing well and this is the right opportunity to sell the stake to Blackstone as they offered good value.

The deal will take 3 months to consummate, while Zee's lenders will not benefit from this stake sale. The company is in a steady state and expect Blackstone to bring more value, he added.

At 09:18 hrs Essel Propack was quoting at Rs 134.30, up Rs 1.65, or 1.24 percent on the BSE.

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First Published on Apr 23, 2019 09:20 am
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