McGraw Hill Financial (NYSE: MHFI) has increased its equity position to 67.8% (from 52.8%) in CRISIL Limited, an Indian based analytical company and India’s leader in credit ratings and research.
As part of the voluntary tender offer announced in June 2013, McGraw Hill Financial acquired 10,623,059 equity shares from shareholders of CRISIL, which represents 15.1% of the total equity shares outstanding. The tender period began July 24, 2013 and concluded August 6, 2013.
The cash offer of INR 1210 per share values the transaction at approximately INR 12.9 billion or $214 million (based on prevailing exchange rates). McGraw Hill Financial financed the transaction with existing cash resources. The offer represented a premium of 29% to the closing share price on May 31, 2013, and a premium of 12% to CRISIL’s all-time closing high on the National Stock Exchange of India Limited (NSE) prior to the offer being announced.
CRISIL and Standard & Poor’s Ratings Services first signed an affiliation agreement in 1996. The relationship was further strengthened in 1997 when McGraw Hill Financial acquired its initial equity stake in CRISIL. In 2005, McGraw Hill Financial became CRISIL’s majority shareholder.
About CRISIL Limited: CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India’s leading ratings agency. We are also the foremost provider of high-end research to the world’s largest banks and leading corporations. Additional information is available at www.crisil.com.