ABB acquires 75% Stake in Indian Subsidiary
ABB announced that it has successfully raised its stake in its Indian subsidiary to 75%, as part of its strategy to tap the fast-growing Indian market. As a result of this successful open offer, the company’s stake in ABB India has now increased from 52.11 to 75 per cent.
The three-week offer period closed yesterday and ABB India shareholders tendered approximately 23 per cent of the outstanding shares. The total value of this transaction is pegged at $965 million and shareholders have been offered Rs900 per share.
The company has been trying hard since May to up its stake in ABB India and it has finally succeeded after nearly three months of rigorous negotiations. Life Insurance Corporation of India and General Insurance Corporation of India are amongst the companies which tendered their shares as part of ABB’s open offer.
With a whopping $5.9 cash pile in the bag, ABB has been on an acquisition spree for the last couple of months. It mopped up Ventyx, a U.S.-based software maker earlier this month and lost out to Emerson in its bid for British power supply systems maker Chloride in late June.
India is an exciting segment for ABB and the latest acquisition will further cement its position as one of the leading engineering groups in this emerging market.
Reference: Reuters
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