(Reuters) - U.S.-based Blackstone Group agreed to buy a 51 percent stake in Essel Propack Ltd, India's largest rigid plastic packaging provider said https://www.nseindia.com/corporate/SURJE_SINGH_22042019172429_SE_Letter_378.pdf on Monday.
Blackstone will buy the stake from the Ashok Goel Trust at 134 rupees per share, representing a premium of 1.1 percent over the company's Monday closing price.
Under India's takeover rules, the transaction triggered a mandatory open offer in which Blackstone, along with Epsilon BidCo Pte Ltd, offered https://www.nseindia.com/corporate/listcontract1_22042019170103_OPEN_359.pdf to buy an additional 26 percent stake in Essel for 11.42 billion rupees ($163.92 million).
The total deal value will range from $310 million to $462 million, based on the open offer. The Trust will retain a 6 percent stake in the company, Essel Propack said.
In December, Blackstone Chairman Stephen Schwarzman told the Economic Times that a reform-oriented government, weak rupee, bumper exits and new opportunities in bankruptcy and structured capital services will likely make India favorable for aggressive purchases.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Shreejay Sinha)
