McGraw Hill Financial to kick off tender offer to boost CRISIL interest to 75%.
M2 EQUITYBITES-June 3, 2013-McGraw Hill Financial to kick off tender offer to boost CRISIL interest to 75%(C)2013 M2 COMMUNICATIONS http://www.m2.com
3 June 2013 - US financial intelligence company McGraw Hill Financial Inc (NYSE:MHFI) said it would launch a voluntary cash tender offer to raise its stake in Indian rating services unit CRISIL Ltd (NSE:CRISIL, BOM:500092) to 75% from 52.77% currently.
The offer of INR1,210 (USD21.40/EUR16.45) per share, which is seen to commence July and end in early August, is 29% and 12% higher, respectively, than CRISIL's closing price on 31 May and its all-time closing high on the National Stock Exchange of India Limited (NSE), the parent noted. The move targets up to some 15.67m shares in CRISIL.
Assuming full acceptance, the deal is worth some USD340m (EUR261.3m).
McGraw Hill Financial said it would use available cash to bankroll the offer, which will be handled by Morgan Stanley India Company Private Ltd.
The parent intends to keep CRISIL a floated public, independent company, McGraw Hill Financial CEO Harold McGraw III noted.
The deal is seen to have an immediate positive impact on McGraw Hill Financial's earnings per share, the US company said.
CRISIL's generated sales of some INR9.8bn last year.
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|Date:||Jun 3, 2013|
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