A company promoted by Ashok Goel, Essel Propack Ltd is being acquired by Blackstone Group. Ashok Goel is the younger brother of Subhash Chandra who’s the promoter of the Essel Group companies such as Zee Entertainment Enterprises Ltd.
The trust and its affiliates hold around 57 percent equity currently. Funds managed by the private equity company agreed to buy a 51 percent stake in Essel Propack at Rs 134 a share from Ashok Goel Trust, controlled by Goel’s family, according to a statement.
The takeover will also trigger a mandatory open offer for an additional 26 percent shares of the company. The open offer price has been fixed at Rs 139.19 apiece. That’s a 5 percent discount to the current market price.
The open offer subscription, the total consideration of the deal will vary between Rs 2,157 crore and Rs 3,211 crore. Following the open offer, Ashok Goel will retain 6 percent stake in the company.