India's EPL to merge with Indorama-backed Indovida in $2 billion packaging deal

March 29 (Reuters) - Indian packaging company EPL Ltd EPLI.NS said on Sunday it had agreed to merge with Indovida, backed by Thailand's Indorama Ventures, in a deal valuing the combined business at about $2 billion.

The merged group will combine EPL's packaging operations with Indovida's plastics portfolio.

Under the transaction, EPL is valued at about $1.2 billion, implying a price of 339 Indian rupees ($3.58) per share, while Indovida is valued at about $700 million.

Following the merger, Indorama Ventures will become a co-promoter with a 51.8% stake in the combined company, while private equity firm Blackstone BX.N, which backs EPL, will hold about 16.6%.

EPL Chief Executive Hemant Bakshi will remain group CEO, while Indovida CEO Sunil Marwah will continue to run the Indovida business.

The transaction is subject to regulatory, shareholder and court approvals and is expected to close within about a year.

($1 = 94.7770 Indian rupees)