Whirlpool Sells 24% Stake in India for USD 468 Million
Feb 20, 2024 19:43
Whirlpool Corporation offloads 24% stake in Whirlpool of India for USD 468 million to reduce debt. The transaction reduces Whirlpool Mauritius' holding to 51%.
New Delhi, Feb 20 (PTI) American home appliances major Whirlpool Corporation on Tuesday offloaded 24 per cent of its stake in its Indian arm, Whirlpool of India Ltd, in a block deal, raising approximately USD 468 million, which will be used to reduce its debt.
Whirlpool Mauritius Ltd, a wholly-owned subsidiary of Whirlpool Corporation, executed the sale of 30.4 million equity shares of Whirlpool India via an on-market trade, according to an exchange filing.
After the sale of 30.4 million equity shares, Whirlpool Mauritius' holding in the Indian entity has reduced to 51 per cent from the previous 75 per cent, said Whirlpool Corporation in a US SEC filing, a copy of which was shared by Whirlpool of India on BSE here.
"On February 20, 2024, the company's wholly-owned subsidiary, Whirlpool Mauritius Ltd, executed the sale of 30.4 million equity shares of Whirlpool India via an on-market trade," it said.
The transaction, will generate gross sales proceeds of approximately USD 468 million on settlement, said Whirlpool Corporation.
"The Company expects to use transaction proceeds to reduce debt," it added.
Whirlpool of India is one of the leading home appliances firms, and operates three manufacturing facilities at Faridabad, Puducherry and Pune.
Whirlpool Corporation continues to see India as a significant marketplace for growth and an integral part of the Company's growth strategy, it said.
"The Company remains committed to expand the business with new product launches and the recently acquired Elica India business," said Whirlpool Corporation.
On Tuesday, more than 31.5 million shares of Whirlpool of India were traded on the BSE.
Shares of Whirlpool of India on Tuesday settled at Rs 1,287.70 apiece on BSE, down 3.24 per cent.
On November 30 last year, Whirlpool Corporation informed in a regulatory filing that it was planning to sell up to 24 per cent stake in Whirlpool of India in 2024 to raise funds and reduce its debt. The filing was also shared on BSE by Whirlpool of India.
In FY23, Whirlpool of India's total revenue stood at Rs 6,210.25 crore.
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