Blackstone Poised to Sell Up to 50% Stake in PGP Glass, Valued at $600m+

Dec 11, 2023 | News

Global private equity (PE) firm Blackstone Inc. is looking to sell as much as 50% stake in PGP Glass Pvt. Ltd that it acquired three years ago, three people aware of the development said.

The PE firm has named investment bank Jefferies Group Llc to find buyers for the bottle maker earlier called Piramal Glass, and large global funds have been sounded out, the people said on the condition of anonymity. “The deal is at a very early stage. The information memorandums (IMS) are yet to be sent out. Some PE funds have been informally approached,” one of the persons said.

Blackstone bought 100% stake in PGP Glass in 2020 from the Piramal Group for about $1bn then. While $850m was paid upfront, around $150m was set to be paid later after certain milestones.

The partial stake sale will help the Us-based PE firm derisk its investment in the Mumbai-based firm, the second person cited above added.

Blackstone’s stake sale strategy is similar to what Temasek Holdings Ltd, the Singapore government’s sovereign fund, is looking to do with its investment in Manipal Hospital. Mint had reported earlier that Temasek is in talks with sovereign wealth funds to sell a minority stake in the hospital chain where it holds around 59% stake.

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Blackstone declined to comment to an emailed query from Mint. Jefferies did not immediately respond to a request for comment on Sunday.

PGP Glass supplies glass bottles to clients in the cosmetics and perfumery, pharmaceuticals and specialty food packaging industry. The company has three manufacturing facilities across India and Sri Lanka, and sells to clients such as Baralan International S.P.A., CIMSA, Baralan Glass, USA Coty, Unilever, among others, in more than 60 countries.

As of December 11, 2023, the market capitalization of PGP Glass Ceylon PLC (GLAS.N0000:CSE) is LKR 23.94bn. This is calculated by multiplying the current market price of the stock (LKR 25.20) by the number of outstanding shares (950.09million).

Blackstone is reportedly looking to sell as much as 50% of its stake in PGP Glass, which could imply a deal value of around LKR 11.97bn ($666m).

Source: Press Reader 

Source: Bloomberg Terminal

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