Initiates Voluntary Offer for Additional 22.23% of India’s Leading Credit Ratings, Research Company
McGraw Hill Financial (NYSE: MHFI) announced it is making a voluntary open offer to acquire up to 15,670,372 shares, representing 22.23% of the total equity shares outstanding in CRISIL Limited, a global analytical company and India’s leader in credit ratings and research. Full acceptance of the offer would increase McGraw Hill Financial’s total stake in CRISIL to 75% from 52.77%.
The cash offer of INR 1210 or $21.42 per share represents 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). The offer also provides an attractive liquidity opportunity to current CRISIL shareholders. CRISIL’s stock had an average daily trading volume of 32,551 shares cumulatively on the NSE and BSE during the last 12 months.
Over the last five years, CRISIL’s revenue has increased at a compound annual growth rate of 19.3%. In 2012, CRISIL had total sales of INR 9,777 million or $173.1 million, 63% of which was generated outside of India, and net income of INR 2,204 million or $39.0 million, according to CRISIL’s 2012 Annual Report.
Source: McGraw-Hill Financial