(Bloomberg) -- Blackstone Group LP has agreed to buy a controlling stake in Essel Propack Ltd., as the parent of the Indian packaging supplier to Colgate-Palmolive Co. and Olay Co. sells assets to pay debt.
The world's largest alternative asset manager will acquire 51 percent of Essel Propack for $310 million from one of the founders, Ashok Goel Trust, Essel Propack said in a statement on Monday. The move will trigger an open offer to buy an additional 26 percent of the shares, according to the statement.
Essel Group, which owns businesses ranging from media to production of packaging materials, is struggling to sell assets and repay debt. That includes raising a planned $1.2 billion from Zee Entertainment Enterprises Ltd., India's biggest publicly-traded television network. The conglomerate has until Sept. 30 to raise funds before creditors classify the borrowing as bad debt.
Read about Essel Group's agreement with creditors
Blackstone will offer to buy an additional 26 percent of Essel Propack's shares at 139.19 a piece, according to the statement. The company's shares gained 0.7 percent to 132.55 rupees at the close in Mumbai on Monday. They have risen 21 percent this year. The private equity firm will spend a total of $462 million for its stake, according to the statement.
Morgan Stanley was the financial adviser for Essel Propack, while PWC, Khaitan & Co. and Baker McKenzie were advisers. KPMG, Trilegal and Simpson Thacher & Bartlett helped Blackstone with the acquisition.
To contact the reporter on this story: P R Sanjai in Mumbai at psanjai@bloomberg.net
To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, Arijit Ghosh, Abhay Singh
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