PGP Glass (Pvt.) Ltd., an affiliate of America’s Blackstone Company, yesterday (1) announced a mandatory offer to acquire all ordinary shares of Piramal Glass Ceylon PLC.
PGP Glass on Wednesday (31 March) acquired a 56.45% stake of Piramal Glass Ceylon for Rs. 6.22 billion and the total implied enterprise value of the company is Rs. 13.9 billion.
PGP Glass acquired Piramal Glass Ceylon from its major shareholder, Piramal Glass. Piramal Glass 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.
The full acceptance of the offer, in an instance in cash payable under the offer, would be approximately Rs. 4,799,548,720 (a sum amounting to over Rs. 4 billion).
Pristine Glass has no operations in Sri Lanka and has been incorporated to carry out the manufacturing of glass, glassware, tableware, tumblers, and all other articles and things which can be conveniently manufactured from glass and/or China clay.
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 (seller) and Pristine Glass (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.
Blackstone affiliate announces Piramal Glass Ceylon mandatory offer
02 Apr 2021
Blackstone affiliate announces Piramal Glass Ceylon mandatory offer
02 Apr 2021