Whirlpool Corp to cut stake in Indian arm to 20% in 2025
Whirlpool Corporation intends to reduce its stake in its Indian subsidiary to 20 per cent in 2025 through market sell-downs, a statement from the company said.
The US-based consumer durables maker, which currently holds 51 per cent stake in its Indian unit, expects to remain the largest shareholder following the anticipated sell-downs.
Last February it had sold a 24 per cent stake in Whirpool of India for around $468 million to take off money off the table and utilise the proceeds and reduce its debt. At that time, the Indian company’s shares had ben trading at around ₹1,260 levels and subsequent to the transaction zoomed to a high of ₹2,387 and now the shares have fallen to the previous year’s levels again.
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Whirlpool will remain a relevant part of Whirlpool Corporation’s portfolio, and we continue to believe Whirlpool India has a strong long-term trajectory for growth, the American company said.
It said it expected the sell-downs to result in more autonomy for the Indian subsidiary to adjust to evolving industry conditions and enabling it to focus on accelerated growth and utilising its well-funded business to invest further in it.
Sustained brand licensing and technology agreements will continue to support business operations and long-term growth of Whirlpool as one of the most trusted brands in India, it added.
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