The shares in Essel Propack have been transferred to Axis Mutual Fund, Franklin Templeton Mutual Fund and DSP Mutual Fund, Morgan Stanley, Neuberger Berman and Nomura
Private equity major Blackstone has reportedly divested 23% stake in India-based tube-packaging company unit Essel Propack (EPL) for $252m through open market transactions.
The shares have been sold to Axis Mutual Fund, Franklin Templeton Mutual Fund and DSP Mutual Fund, Morgan Stanley, Neuberger Berman and Nomura, reported Press Trust of India (PTI).
Through Epsilon Bidco PTE entity, Blackstone divested a total of 7,25,80,090 shares that represent a 23% stake of Essel Propack.
Blackstone will continue to own 52% stake in EPL
With the completion of the transaction, the PE firm will continue to own a 52% stake in EPL. The sale represents INR256.5 ($3.4) per share, according to The Hindu Business Line.
Blackstone spokesperson was quoted by the news agency as saying: “The transaction was executed to create liquidity in the stock given significant investor interest after the company’s strong performance.
“Also, the 23 per cent shares came in an open offer last year which now have been sold back to high quality global and domestic investors.”
Last year, Blackstone acquired a 51% stake in Essel Propack from Ashok Goel Trust for a purchase price of INR134 ($1.8) per share, bringing its stake in Essel Propack to 75%.
On the previous transaction, Morgan Stanley served as the exclusive financial advisor to the sellers and its affiliates while PWC, Khaitan & Co and Baker McKenzie acted as advisors to sellers and its affiliates.
KPMG, Trilegal and Simpson Thacher & Bartlett served as advisors to Blackstone.
EPL manufactures and provides laminated tubes through its 20 facilities located across 10 countries. It serves clientele including major brands in the oral care, beauty, cosmetics and pharmaceutical industries.