With guidance from Goldman Sachs, Whirlpool is targeting completion of the transaction by Wednesday. The appliance manufacturer is set to divest a 24% interest in its Indian subsidiary this week, potentially raising $451 million through block deals, as revealed in a term sheet obtained by Reuters. This move comes amidst a surge in stock market offerings in India.
Whirlpool intends to vend the stake at 1230 rupees per share, representing a 7.6% markdown from Monday’s closing price, with the objective of finalizing the transaction by Wednesday. The term sheet revealed that Goldman Sachs is providing advisory services to Whirlpool regarding the deal. Neither Goldman Sachs nor Whirlpool responded immediately to comment requests.
In a U.S. filing made in November, Whirlpool disclosed its plan to divest the stake as part of its debt reduction strategy. The company’s profits experienced a sixth consecutive decline in the three-month period ending December, attributed to heightened competition and pricing pressures.
The minimum offering of shares in the Indian unit stands at 19 million, valued at $282 million at the proposed sale price, with the potential to offer an additional 11.4 million shares, amounting to an extra $169 million. India’s main stock indices are approaching record highs, buoyed by a robust economic growth rate surpassing many other major economies, alongside expectations of political stability ahead of an upcoming election later this year.
Over the past year or so, investors such as Blackstone, Alipay, and SoftBank have collectively raised billions of dollars by divesting stakes in Indian portfolio companies. This trend has bolstered confidence among other investors, encouraging them to consider selling significant quantities of shares as well.
