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Blackstone affiliate acquires Piramal Glass Ceylon

31 Mar 2021

By The Morning Business Desk   PGP Glass, an affiliate of America’s Blackstone Group, yesterday (30) acquired 56.45% stake of Piramal Glass Ceylon PLC for Rs. 6.22 billion and is expected to go for a mandatory offer for the remaining shares, according to Asia Securities Chairman Dumith Fernando. Speaking to The Morning Business, Fernando stated that the mandatory offer would be because the total implied enterprise value of the company is Rs. 13.9 billion. PGP Glass acquired Piramal Glass Ceylon PLC from its major shareholder Piramal Glass (Pvt.) Ltd. According to Fernando, Piramal Glass (Pvt.) Ltd. sold 536,331,880 shares (56.45%) of its shares at a price of Rs. 11.60 each to PGP Glass. The deal was reportedly executed by Asia Securities. A spokesperson from Asia Securities told us that this transaction reaffirms Asia Securities’ position as the preferred investment banking and stockbroking partner to the most sophisticated investors for cross-border M&A transactions in Sri Lanka. “The acquisition price implies a total enterprise value of Rs. 13.9 billion for the target company,” the spokesperson added. In December 2020, Piramal Glass (Pvt.) Ltd. entered into a share purchase agreement to sell its entire stake of 56.45% in Piramal Glass Ceylon to Pristine Glass (Pvt.) Ltd. As per a stock exchange filing in late last year, Piramal Glass Ceylon revealed that the Board of Directors of its company has entered into a sale and purchase agreement with, inter alia, Piramal Glass (Pvt.) Ltd. (seller) and Pristine Glass (Pvt.) Ltd. (purchaser). The transaction was, at the time, estimated to be based on the enterprise value of the company which amounted to Indian rupees (INR) 5.166 billion. However, prior to this, in September 2020, it was internationally reported that Blackstone Group Inc. and Partners Group Holding AG were the two remaining bidders for the stake in Piramal Enterprises Ltd.’s glass unit, the parent of Sri Lanka’s Piramal Glass Ceylon. Billionaire Ajay Piramal’s conglomerate was reported to have been seeking a valuation of $ 1 billion for the unit from this stake. Accordingly, the Piramal Group, India’s third largest glass manufacturer, had appointed Bank of America (BOA) to sell four glass plants, with two in India, one in Sri Lanka, and one in the US. As per the company, PGP Glass was said to be a hi-tech plant with a European business approach to the production of a range of high-quality glass containers. Also, being one of the industry leaders in Ukraine, focusing on the production of flint and coloured glass containers for beer, alcoholic beverages, wine, soft drinks, and canning industries, the plant’s total capacity is equal to 560 tonnes of glass a day.


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