By Baiju Kalesh and Anto Antony
Blackstone Group Inc. and Associates Team Holding AG are the two remaining bidders vying for a controlling stake in Piramal Enterprises Ltd.’s glass unit, people today common with the matter explained.
The investment corporations have progressed to the closing round of bidding for India’s Piramal Glass Ltd., the individuals explained, asking not to be identified as the information is non-public. Billionaire Ajay Piramal’s conglomerate is searching for a valuation of $1 billion for the unit from the sale, the men and women mentioned. Piramal could name a winner as shortly as October, a single of the people reported.
Negotiations are ongoing and the investment corporations can decide not to continue with gives, the folks mentioned. Other bidders could also arise, and Piramal could decide on to maintain the small business, they included. Reps for Blackstone, Companions Group and Piramal declined to comment.
Piramal Enterprises has been increasing cash by way of personal debt problems as properly as weighing sales of some of its non-main units. In June, the group agreed to offer a 20% stake in its Piramal Pharma Ltd. arm to personal equity agency Carlyle Group Inc. for $490 million, supplying the enterprise an organization value of $2.7 billion.
Ajay Piramal has also reported he intends to exit his investment in the parent of shadow financier Shriram Capital Ltd., even though Piramal Enterprises has a short while ago been looking for to introduce new traders to shore up the capital for its very own shadow lender, Piramal Capital & Housing Finance Ltd.
Piramal Glass helps make glass packaging and has factories throughout the U.S., India and Sri Lanka with a complete capacity of 1,475 tons per working day, in accordance to its web site. The former Gujarat Glass was obtained by Piramal Group in 1984.
Shares of Piramal Enterprises rose as a great deal as 2.8% on Wednesday, offering the business a market value of $4.2 billion. Its shares have declined about 10% in the year to date.