Blackstone has appointed Morgan Stanley to advise on the sale of its controlling interest in EPL, a speciality packaging company, Moneycontrol reported, citing three people familiar with the matter.
The private equity company holds a majority stake of 51.47% in the listed entity, formerly known as Essel Propack.
This move comes as Blackstone aims to divest its mature investment, which it acquired in 2019.
A source familiar with the matter stated: “Morgan Stanley has been taken onboard recently as the sell-side advisor. The sale process hasn’t been launched yet, but the target is to find a suitable buyer by March 2025.
“This is intended to be a full stake sale and not a partial one and Blackstone is expecting a significant premium in terms of valuation.”
In September 2020, Blackstone’s 23% stake in Essel Propack was divested through a block deal, raising approximately Rs18.5bn ($252m).
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While block deals are a common strategy for private equity exits, Blackstone is reportedly not considering this option for its current divestiture.
“Blackstone is not looking at the block deal option this time and is keen on a complete exit at one go via the M&A [mergers and acquisition] route,” a third person with knowledge of the proceedings commented.
Previously, Morgan Stanley served as the financial advisor to the sellers when Blackstone initially acquired Essel Propack.
The private equity fund had outbid competitors, including French company Albéa, and Indorama, for the asset.
