Whirlpool likely to sell 24% stake in its Indian unit via block deal
₹1230 per share, representing a 7.6 percent discount from Monday's closing price, with plans to finalize the transaction by Wednesday. Also read: JSW Steel eyes stake worth $1 bn in Australia’s Blackwater coal mine The company aims to reduce its debt burden, as indicated in a U.S filing from November. Goldman Sachs is providing advisory services for the deal, as per the term sheet disclosed.
By the end of December, Whirlpool Corporation, operating via its subsidiary Whirlpool Mauritius, possessed a 75 percent ownership stake in the consumer durable goods manufacturer. In January, Whirlpool Corporation announced its intention to divest up to 24 percent of its stake in the Indian unit, while maintaining majority control. This move to sell shares aligns with the American multinational's strategy to reduce debt and strengthen its financial position.
Also read: France’s Thales to upgrade Air India’s inflight entertainment system Whirlpool's profits have dwindled for five consecutive quarters until September's end due to heightened competition and pricing pressures. The divestment will involve at least 19 million shares in the Indian unit, valued at $282 million based on the proposed price, with a provision to offer an additional 11.4 million shares, potentially worth an extra $169 million. Despite this move, India's key stock indices remain close to all-time highs, buoyed by robust economic growth and expectations of political stability ahead of upcoming elections.
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