Essel Propack gains 2% as Blackstone agrees to buy 51% stake

NEW DELHI: Shares of Essel Propack climbed 2 per cent in Tuesday's trade after reports that Blackstone agreed to buy 51 per cent of the promoter stake in the company at Rs 134 per share.

The transaction will trigger a mandatory open offer for a purchase of additional 26 per cent shares of the company. For this, the open offer price has been fixed at Rs 139.19 per share.

"Based on the open offer subscription, the purchase price consideration will vary between Rs 2,157 crore and Rs 3,211 crore (or, approximately $310 million - $462 million). The sale is expected to complete in the coming months, subject to customary closing conditions and approvals," the company said in a BSE filing.

At 10.19 am, shares of the company were trading 0.26 per cent higher at Rs 133 apiece on BSE. The stock was up 2 per cent in early trade.