Whirlpool Offloads 24% Share in Indian Division for $468 Million
Whirlpool Corporation announced on Tuesday that it has successfully concluded the sale of a significant portion of its stake in its Indian subsidiary, Whirlpool of India, for approximately $468 million. The transaction, conducted through its subsidiary in Mauritius, marks a strategic move by the multinational appliance manufacturer to reduce its ownership in the Indian entity from 75% to 51%.
Whirlpool Corporation announced on Tuesday that it has successfully concluded the sale of a significant portion of its stake in its Indian subsidiary, Whirlpool of India, for approximately $468 million. The transaction, conducted through its subsidiary in Mauritius, marks a strategic move by the multinational appliance manufacturer to reduce its ownership in the Indian entity from 75% to 51%.
The sale attracted interest from various institutional investors, with SBI Mutual Fund, Societe Generale, and Nippon India Mutual Fund emerging as notable buyers. According to bulk deal data from the Bombay Stock Exchange (BSE), these investors acquired stakes in Whirlpool of India at a price of 1,277 rupees per share.
Whirlpool intends to utilize the proceeds from the stake sale to alleviate its debt burden, a decision aligned with its strategic financial objectives. The settlement of the share sale is expected to be finalized on Wednesday, facilitating Whirlpool’s debt reduction strategy.
News of the stake sale had initially surfaced through reports by Reuters on Monday, indicating the involvement of Goldman Sachs as the advisory entity for the transaction, as per a term sheet. The deal underscores Whirlpool’s commitment to optimizing its capital structure and enhancing shareholder value.
Whirlpool of India, a prominent player in the country’s home appliance market, benefits from the strong brand equity and diversified product portfolio of its parent company. The partial divestment of Whirlpool Corporation’s stake in the Indian subsidiary reflects the company’s strategic realignment to capitalize on growth opportunities while simultaneously addressing financial obligations.
As Whirlpool Corporation continues to navigate the dynamic landscape of the global appliance industry, the stake sale in its Indian unit underscores its proactive approach to financial management and optimization of operational efficiencies. Market observers are keenly monitoring the implications of this transaction on Whirlpool’s future strategic initiatives and its competitive positioning within the Indian market and beyond.
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