French packaging company Albéa and private equity giant Blackstone Group are in advanced talks to acquire a controlling stake in packaging company Essel Propack Ltd, a media report said.
Indorama and US-based private equity giant The Carlyle Group have also submitted non-binding bids, The Economic Times reported, citing three people aware of the development.
Essel Propack, part of media baron Subhash Chandra’s debt-laden Essel Group, makes laminated plastic tubes for the fast-moving consumer goods and pharma companies. The promoters are looking to sell a stake in Essel Propack to pare debt, the report said.
Morgan Stanley is advising the promoters of Essel Propack on the transaction, according to the report. As on 31 December 2018, the promoters held a 57.19% stake in Essel Propack.
In another report, The Economic Times said alternative asset management firm Baring Private Equity Asia is looking to acquire a controlling stake in software services company NIIT Technologies Ltd.
Baring Private Equity Asia would first buy the 30.58% stake held by promoters for about Rs 2,500 crore. This would trigger an open offer for Baring to buy an additional stake as per regulatory norms, according to the report.
Education and training services firm NIIT Ltd holds 23.51% of the total 30.58% promoter stake in NIIT Tech.
Citing people aware of the development, the report said Baring PE Asia is in talks with financial institutions such as Standard Chartered, Nomura, ING, Credit Suisse and Deutsche Bank to raise around $100-125 million for financing the transaction.
Baring PE Asia, which provides growth capital to companies, had acquired a majority stake in Hexaware in 2013. It held a 62.66% stake in the mid-sized software services company at the end of December, stock-exchange data showed. The PE firm had pared its stake in Hexaware last year, earning benchmark returns .
Separately, Mauritius-based Royale Partners Investment Fund’s bankruptcy resolution plan for EPC Constructions India Ltd has been approved by the debt-laden company's lenders of, Mint reported, citing two people aware of the development.
EPC Constructions India, formerly known as Essar Projects India Ltd, is undergoing insolvency proceedings at the National Company Law Tribunal (NCLT).
A spokesperson for Royale Partners told the financial daily that its resolution plan had received approval from 73% of the committee of creditors. The resolution plan will now need the clearance of the NCLT.
EPC Constructions is an engineering and construction company of Essar Group. Its outstanding debt stood at around Rs 7,300 crore, according to the report.
