Indorama Ventures Public Company Limited, listed in Thailand, is one of the world’s leading chemicals producers, with manufacturing footprint across Europe, Africa, Americas, and Asia Pacific.
- Indorama is acquiring 24.9% of EPL from Blackstone at a purchase price of Rs 240 per share
- Blackstone currently holds 51.45% of the Company and is classified as the only promoter
- It had bought the stake from the erstwhile promoters in 2019 at around Rs 2,176 cr
- From IndoRama transaction it would be getting around Rs 1,916 cr as against the corresponding acquisition cost of Rs 1,053 i.e., a CAGR return of 10.5%.Net of taxes and INR depreciation this would be a much smaller nominal return.
As per the press release, Indorama’s buy is financial in nature. Optically though it seems more strategic.