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Wednesday September 22nd, 2021
Business

Blackstone group enters Sri Lanka taking over Piramal Glass unit

ECONOMYNEXT – US-based Blackstone Capital has taken over Sri Lanka’s publicly traded Piramal Glass (Pvt) Ltd, paying 6.2 billion rupees to buy a controlling stake, in a transaction on the Colombo Stock Exchange.

Asia Securities Advisors (Pvt) Ltd were financial advisors Blackstone group. The deal was executed by Asia Securities.

A mandatory offer is expected to follow with the Blackstone getting 56 percent stake in the firm, through PGP Glass.

PGP Glass, a Blackstone unit, purchased India’s Piramal Glass and several affiliated companies including the Sri Lanka firm.

The new owners have the know-how to take develop the glass firmly and boost exports, analysts say.

“Blackstone is interested in the export potential of Piramal Glass,” a person familiar with the deal said.

“They are a leader in glass packaging. Blackstone has superior manufacturing and product design capabilities. They are good at growing and creating value.”

Blackstone had acquired Gerresheimer AG, a German glass and plastics packaging maker for pharmaceuticals in 2004 developed it and earned a 7.5 times return in about four years.

Piramal is the market leader for glass packaging in Sri Lanka and already has an export foothold in several countries. Blackstone group is estimated to have over 600 billion US dollars in assets under management. It was founded in the mid 1980s by two ex-Lehman executives. (Colombo/Mar30/2021)

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