Brookfield to buy 25% stake in BC Jindal’s packaging biz

Mumbai: Canadian asset manager

Brookfield

has agreed to acquire a 25% stake in the packaging films business of the B C Jindal Group in a Rs 2,000 crore deal that further fuels this year’s private equity investments in India. The group will transfer the packaging films business from the BSE-listed Jindal Poly Films (JPFL) to a wholly-owned subsidiary via a slump sale, after which Brookfield will invest in the arm. Slump sale means transfer of a business of a company for a lump-sum, without assigning any values to individual assets and liabilities of the entity. The packaging films business accounted for 85% of Jindal Poly Films revenue (Rs 4,082 crore) in FY21. After demerger, the listed entity will be left with non-woven fabrics, which find application in hygiene and baby diapers, and some other corporate assets. Toronto-based Brookfield, which has been present in India for over 11 years and has assets under management of over $20 billion here, will get two seats on the board of

JPFL Films

, the entity which will house the packaging films business. This is one of the largest private equity transactions in India’s packaging sector.