Indorama Ventures Public Company Limited has entered into a definitive agreement with private equity funds managed by Blackstone to acquire a minority stake of 24.9% in Essel Propack Limited for $220 million.
Khaitan & Co acted as the legal advisors for Indorama Ventures on this transaction.
The transaction team consisted of Haigreve Khaitan (Senior Partner), Surbhi Kejriwal (Partner), Abhishek Dadoo (Partner), Mehul Shah (Partner), Anvita Mishra (Principal Associate), Vedika Bhandari (Principal Associate), Krithika Kataria (Associate), Nikhil Singh (Associate) and Pavitra Khaitan (Associate).
Chandhiok & Mahajan advised Indorama Ventures on the anti-trust aspects of the transaction.
The transaction team consisted of Karan Singh Chandhiok (Partner, Head Competition & Antitrust and Regulatory Practice), Deeksha Manchanda (Partner), Aakash Kumbhat (Senior Associate), Riddhika Dumane (Associate) and Aileen Aditi Sundardas (Associate).
Trilegal and Simpson Thacher & Bartlett advised Blackstone on the transaction.
This transaction involves Indorama Netherlands BV, a subsidiary of Indorama Ventures, purchasing the minority stake, thereby establishing a foothold in EPL, a leading global manufacturer of laminated tubes. Blackstone, which had acquired a controlling stake in EPL in 2019, is now reducing its holding, though it will remain a significant shareholder. The deal, priced at ₹240 per share, is expected to finalize in the coming months, pending customary approvals.
This strategic move is anticipated to bring about positive developments for EPL. Indorama Ventures' global presence and expertise are expected to facilitate EPL's expansion, particularly in emerging markets. The partnership is seen as a way to accelerate EPL's growth and enhance its performance. Furthermore, Indorama's involvement is expected to aid EPL in expanding its geographical footprint, especially in regions where Indorama has a strong presence, such as Thailand and Nigeria. The transaction is viewed by analysts as a positive development for minority shareholders, as it removes uncertainty regarding Blackstone's potential exit and introduces a new strategic investor.
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