Moody’s Corporation (NYSE:MCO) announced that it has secured a majority equity ownership stake in ICRA Ltd., a leading provider of credit ratings and research in India, increasing its stake from 28.5% to over 50.0%.
“The successful conclusion of our offer for a majority stake in ICRA will allow us to extend our strong ties as we work together to serve the growing domestic debt market in India and across the region,” said
Moody’s Corporation (NYSE:MCO) announced today that it has secured a majority equity ownership stake in ICRA Ltd., a leading provider of credit ratings and research in India, increasing its stake from 28.5% to over 50.0%.
“The successful conclusion of our offer for a majority stake in ICRA will allow us to extend our strong ties as we work together to serve the growing domestic debt market in India and across the region,” said Raymond McDaniel, President and Chief Executive Officer of Moody’s.
Based on current exchange rates, the total value of the transaction is approximately $86 million, or INR 5.17 billion. Moody’s will fund the offer from international cash on hand. The transaction is expected to close on or by June 30, 2014. Moody’s offer price of Rs 2,400 per equity share of ICRA represented a premium of 51.1% to the closing stock price of ICRA Limited on February 21, 2014, the last trading day before the offer announcement, and a 46.6% premium to ICRA’s all-time closing high on the National Stock Exchange of India (NSE) of INR 1,637 per share on December 31, 2013.
Moody’s first purchased an ownership stake in ICRA in 1998 and has been relentless in seeking a majority stake.
Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency. Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange.
About: ICRA is one of India’s leading credit rating agencies. It also owns Software Development, Business Intelligence and Analytics and Engineering Services ICRA Techno Analytics Limited (ICTEAS) and ICRA Management Consulting Services Limited (IMaCS).
ICRA is an Associate Member of BIIA.
Source: Moody’s Press Release
