IANS | 01 Dec, 2023
Whirlpool of India shares are down by more than 8 per cent on Friday
after the parent company announced the plans to cut its stake by up to
24 per cent.
Whirlpool of India shares are down 8.83 per cent at Rs 1429 on BSE.
Whirlpool
Corporation on Thursday announced its intention to enter into one or
more transactions to sell up to 24 per cent of its ownership interest in
Whirlpool of India Limited (Whirlpool India) in 2024.
Whirlpool
currently maintains a 75 per cent ownership interest in Whirlpool India
through a wholly-owned subsidiary, and intends to retain a majority
interest in Whirlpool India following completion of such transaction or
transactions.
The Company expects to use transaction proceeds to reduce debt levels, which will enhance balance sheet flexibility.
Proceeds
expected to be used for debt repayment are incremental to the $500
million term loan repayment that the Company previously disclosed it
expects to pay in the fourth quarter of 2023.
Whirlpool said it
continues to see India as a significant marketplace for growth and an
integral part of the company’s growth strategy.
“The Company
remains committed to expand the business with new product launches and
the recently acquired Elica India business. The Company does not
anticipate this announcement to impact previously issued full-year
guidance,” Whirlpool said.
