US-based Blackstone Group has announced that private equity funds managed by the group have entered a definitive agreement with Ashok Goel Trust to purchase a 51% stake in India’s rigid plastic packaging provider Essel Propack (EPL).

Ashok Goel Trust and its affiliates hold a 57% stake in EPL. Blackstone will buy the stake from the Trust at Rs134 ($1.92) per share.

Under the Takeover Code in India, Blackstone and Epsilon BidCo have triggered a mandatory open offer following their proposal to purchase an additional 26% in Essel for Rs11.42bn ($163.92m).

The open offer price has been fixed at Rs139.19 ($2) per share.

The purchase price consideration will range from Rs21.57bn ($310m) to Rs32.11bn ($462m) based on the open offer subscription.

The transaction is expected to be completed in the coming months, subject to customary closing conditions and approvals.

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Founded in 1982, Essel Propack annually manufactures seven billion laminated tubes through its 20 facilities across ten countries.

The company’s clients include global brands in the oral care, cosmetics, beauty and pharmaceutical industries.

Its revenue in the last 12 months as of 31 December was Rs26.42bn ($380m).

“EPL is a partner for leading global customers across sectors and geographies through a sharp focus on innovation, sustainability and agility.”

Essel Propack chairman and managing director Ashok Goel said: “Today, EPL is a partner for leading global customers across sectors and geographies through a sharp focus on innovation, sustainability and agility.

“As we embark on the next trajectory of growth at EPL, Blackstone brings deep expertise in packaging space globally with a senior team of highly experienced professionals with a proven track record of creating value. I see Blackstone as a partner with the same values, culture and ethos. The company’s management team is excited to welcome Blackstone.”

After the transaction, Ashok Goel will retain a minority stake in the company.

For the transaction, Morgan Stanley acted as financial advisor and PWC, Khaitan & Co and Baker McKenzie acted as advisors to Essel Propack and its affiliates. KPMG, Trilegal, as well as Simpson Thacher and Bartlett, acted as advisors to Blackstone.