ABB hikes stake in Indian arm to 75 per cent
28 Jul 2010
Swiss power and automation technology group ABB has successfully completed the buy-back of shares in its Indian subsidiary, to increase its stake from 52.11 per cent to 75 per cent.
ABB's open offer, which was open for the last three weeks, closed today, after shareholders of ABB India tendered approximately 23 per cent of the outstanding shares.
The offer has been oversubscribed by approximately 1.5 per cent and ABB said it would acquire the shares on a proportionate basis.
The offer of Rs900 per share, which was announced on 17 May 2010, values the transaction at approximately $965 million (based on the exchange rates at the time of the announcement).
As per stock exchange data, Life Insurance Corporation of India (LIC) tendered just over half of its 8.33 per cent stake in ABB (176,54,869 shares) in the open offer.
General Insurance Corporation of India (GIC) tendered just about 45 per cent (one million shares) of the 2.208 million shares (or 1.04 per cent of the total equity) in the company.
