Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Companies / News/  Indorama in race for PET film maker Polyplex
BackBack

Indorama in race for PET film maker Polyplex

Noida-based listed packaging materials maker is seeking a valuation of $1 billion, including debt.

Promoters Sanjiv Saraf and family own 50.97% of the company. Photo: MintPremium
Promoters Sanjiv Saraf and family own 50.97% of the company. Photo: Mint

MUMBAI:Thailand’s Indorama Ventures has joined the race to acquire control of Noida-based listed packaging materials maker Polyplex Corp. Ltd, three people with direct knowledge of the deal said.

The company has also seen interest from financial investors, including Bain Capital and CVC, these people said, requesting anonymity.

for you

View All
Investor interest
View Full Image
Investor interest

Polyplex, which had a market value of 5,435 crore, is seeking a valuation of $1 billion, including debt, the people said.

You might also like

Margin pressures cast a chill over Voltas 

How America’s war on prices hammers the world

Blackstone, Advent in talks to buy stake in Suven Pharma

“The three bidders have engaged with the company separately and, basis their due diligence and the offer price, the company will decide to enter into an exclusivity agreement with one of them soon," one of the people said.

Last year, the company’s promoters, the Saraf family, hired investment bank Goldman Sachs to scout for buyers. Mint was first to report the development on 16 April 2021. The promoters, owing to succession issues, wanted to capitalize on the investor interest in the segment, the Mint report said.

Emailed queries to the spokespeople for Polyplex, Indorama Ventures, Bain and CVC did not elicit any response till press time.

For Indorama Ventures, a maker of materials for food and beverage packaging, the acquisition of Polyplex’s business will help increase capacity significantly in key global markets.

Polyplex had earlier sold its polyethylene terephthalate, or PET, resin plant near Istanbul to Indorama Ventures in 2015.

Polyplex is the fifth-largest producer of polyester films in the world and has manufacturing and distribution centres in India, Turkey, Thailand, Indonesia, the Netherlands, and US, from where it supplies packaging materials to 83 countries.

“The acquisition will help Indorama double down in some of its key markets," the second person said.

India’s packaging sector has seen investor interest for some time now.

Some of the previous deals in the segment include Advent International’s investment in Manjushree Technopack, Blackstone’s investment in Essel Propack and Warburg Pincus’ investment in Parksons Packaging.

According to shareholding pattern available on the bourses, the promoters of Polyplex own 50.97% of the company.

On Thursday, Polyplex shares, which have doubled since April last year, gained 0.51% to 1,729 on BSE.

Last week, Bloomberg reported private equity firm Bain Capital had bid to acquire the company. “CVC too is evaluating it and might soon submit its bid," said the second person aware of the company’s plans.

Elsewhere in Mint

In Opinion, Himanshu argues why the RBI is not solely responsible  for inflation. Indira Rajaraman writes about the dubious ability of the Nobel Peace Prize to foster peace. Ramin Jahanbegloo writes about Iran's experiment with Gandhian ideas. Long Story delves into the rising sea of spam in your phone.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

ABOUT THE AUTHOR
Sneha Shah
Sneha writes on new economy businesses, private and public marker funding and deals. She writes about startups and the new economy, specifically PE/VC and investment banking.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 04 Nov 2022, 12:14 AM IST
Unlocked Premium Articles Lock
Get access to this Premium story
by logging in Login now
New to Live Mint? Sign up

Next Story footLogo
Recommended For You