The US-based asset manager will acquire the stake through its dedicated investment program, along with its other institutional partners.
Jindal Poly Films, a manufacturer of flexible plastic films and non-woven fabrics, has entered into an agreement to sell a minority stake in its packaging film business to Brookfield Asset Management for Rs 2,000 crore.
The US-based asset manager will acquire the stake through its dedicated investment program, along with its other institutional partners.
Jindal Poly Films (JPFL) will divest its packaging film business as a wholly owned subsidiary. Brookfield and the other investors will take a minority interest in this subsidiary.
The polyfilm business generates nearly 85% of total revenues. JPFL will retain ownership of its non-woven business unit and other company assets.
The structured equity investment in JPFL consists of mandatory convertible preferred stock and shares of the new subsidiary, giving Brookfield Special Investments (BSI) a 25% stake and protection against downside effects through a rattling equity structure linked to financial performance . BSI has also entered into an investor rights agreement.
Commenting on the agreement, Dev Santani, director of BSI, said: “We are delighted to partner with JPFL, India’s leading manufacturer of flexible plastic films for the packaging industry, which plays a vital role in the preservation and hygiene of products in various industries. sectors such as food and healthcare, and in partnership with Jindal, we aim to help the company maintain its strong track record of growth.”
We are proud to form a strategic partnership with a major global investor such as Brookfield. Having access to their international network greatly broadens our horizons,” said Vinod Kumar Gupta, CEO of JPFL. Brookfield’s presence on the board of directors of this new subsidiary will also facilitate benchmarking against international governance standards and best practices, he added.
Brookfield’s Special Investments program is industry-independent and invests in large-scale, uncontrolled (minority) investments where it can provide capital and be a strategic partner to leading companies.
This post Brookfield takes minority stake in Jindal Poly Films for Rs 2,000 crore
was original published at “https://www.financialexpress.com/market/brookfield-picks-up-minority-stake-in-jindal-poly-films-for-rs-2000-crore/2464295/”
