Ratings agency Moody’s on Friday said it would make an open offer to raise its stake in domestic rating agency ICRA from 28.5 per cent to 55 per cent. At an offer price of Rs 2,000 an ICRA share, the offer is valued at Rs 530 crore. The deal values ICRA at about Rs 2,000 crore.
The offer is priced at a 25 per cent premium over ICRA stock’s closing price on Friday on BSE (Rs 1,594.2).
Moody’s plans to acquire up to 2.65 million shares in ICRA, amounting to 26.5 per cent of the company’s equity. The money would be paid in cash, according to Citigroup Global Markets India, which is managing the offer.
The announcement by an open offer by Moody’s came after the close of trading on stock exchanges. Details of the offer would be made available on or before March 3, Citigroup Global Markets said.
The offer is being made by Moody’s Singapore Pte Ltd, Moody’s Investment Company India Private Ltd and Moody’s Corporation. It is subject to acceptance of at least 2.14 million shares.
Moody’s Singapore Pet Ltd along with Moody’s Investment Company India Private Limited and Moody’s Corporation is making offer. Further details of the Offer shall be published on or before March 3, 2014, Citigroup Global Markets said.
This offer is a conditional offer and is subject to a minimum level of acceptance of 2.14 million shares (about 21.5 per cent of the capital.) If the number of shares put in offer is less than 2.14 million shares, the acquirer (Moody’s) shall not accept any Equity Shares tendered, the statement said.
NEWS SOURCE: BUSINESS STANDARD
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How will this affect the share price of ICRA? Does it mean ICRA will open at 2000 on Monday? Please clarify. Thanks!
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