8 months ago
CPPIB, Stonepeak to Acquire 26% in Castrol India
Canada Pension Plan Investment Board (CPPIB) and Stonepeak, a US private equity firm, are planning to buy a big part of Castrol India.
They want to buy 26% of the company by offering to buy shares from the public at a price of Rs 194.04 per share.
This is a bit more than the current share price.
BP, the parent company, recently sold a larger part of Castrol to Stonepeak for a lot of money.
BP is selling parts of its business to make more money and focus on other things.
If this deal goes through, the new owners will have a big part of Castrol India, and BP will keep a smaller part to still be involved.
CPPIB and Stonepeak to acquire 26% stake in Castrol India through an open offer.
Offer price is Rs 194.04 per share, a 2.5% premium over the current trading price.
Total consideration for the open offer is up to Rs 4,990 crore.
BP recently sold 65% stake in Castrol to Stonepeak for approximately USD 6 billion.
BP is retaining a 35% stake in Castrol and aims to sell USD 20 billion in assets by 2027.
- Who
- Canada Pension Plan Investment Board (CPPIB) and Stonepeak
- What
- Open offer to acquire 26% stake in Castrol India
- Where
- India
- When
- Following BP's deal to sell 65% stake in Castrol
- Why
- Part of BP's USD 20 billion asset sale program to strengthen financial resilience
Key facts
- Acquirers
- Canada Pension Plan Investment Board (CPPIB) and Stonepeak
- Target Company
- Castrol India
- Stake
- 26%
- Offer Price
- Rs 194.04 per share
- Total Consideration
- Rs 4,990 crore
- BP's Stake in Castrol
- 35%
- BP's Asset Sale Target
- USD 20 billion by 2027
- Castrol India's Share Price
- Rs 191.40 (BSE, Friday)
Quotes
Castrol India
The Indian unit of Castrol, a global lubricant company
“The Acquirer and the persons acting in concerts (PACs) hereby make this Open Offer to the public shareholders to acquire up to 25,71,71,820 (25.71 crore) equity shares, constituting 26 per cent of the equity share capital, at a price of Rs 194.04 per share aggregating to a total consideration of up to Rs 4,990 crore”
thehindubusinessline.com
BP
British multinational oil and gas company
“Transaction accelerates delivery of BP's reset strategy, will significantly strengthen its balance sheet, and advances strategy to focus on the downstream”
thehindubusinessline.com
