The US firm said it would pay Rs 1,210 a share, a premium of almost 29 per cent over the share price on Friday on the BSE at Rs 938.95. McGraw Hill plans to acquire up to 15.7 million shares, or a 22.23 per cent stake, through the open offer, the company said in a statement. Crisil shares jumped by their maximum daily limit of 20 per cent to Rs 1,126.60 on the BSE after the announcement.
The McGraw Hill announcement comes over a month after Unilever had said it would pay up to $ 5.4 billion to raise its stake in Hindustan Unilever, to take its shareholding in the largest domestic consumer goods company to 75 per cent, the maximum permissible limit under the new public float norms of the Sebi.
The offer also represents a vote of confidence in the growth prospects of India and the other markets that Crisil serves, said Harold McGraw III, chairman, president and CEO of McGraw Hill Financial. We intend to keep Crisil a listed public, independent company to maintain the companys leadership and essential role across the Indian economy, and to preserve the entrepreneurial, growth-oriented spirit of the high-performing Crisil team.
The tender offer period is expected to begin in July and conclude in early August. All requirements and procedures under Indian law will be strictly followed. The transaction would be immediately accretive to McGraw Hill Financials earnings per share, the firm said.