ABB India offers to buy back 23 per cent equity for Rs4,400 crore
17 May 2010
Swiss power and automation technology group ABB today announced plans to increase its stake in its Indian arm, from the current 52 per cent to 75 per cent, for around Rs4,400 crore (approximately $965 million).
ABB India has offered to buy its publicly owned shares at Rs900 per share, a 34-per cent premium to Friday's closing price and 14 per cent over the mandatory floor price required under Indian regulations. The potential value of the transaction at the offer price totals around Rs4,400 crore, the company said in a release.
"The aim of the investment is to facilitate the long-term development of ABB's business in India," the release said.
Subject to regulatory clearance, the offer is expected to open on 8 July 2010 and end on 27 July 2010, ABB India said.
Payment for the shares is expected to take place on 10 August 2010. The company's shares are traded on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.
ABB India, reported revenues of Rs6,300 crore ($1.4 billion) and profit before tax of Rs530 crore ($117 million) in 2009. The company employs approximately 6,200 people.
