Whirlpool Likely To Sell 24% Stake In Indian Unit Via Block Deal: Report

New Delhi: Whirlpool Corporation, the foreign owner of Whirlpool of India Ltd may sell up to 24 per cent of its stake in the Indian-listed company through block deals aiming to reduce its financial obligations and enhance its financial standing, as indicated in a filing made in the US in November.

According to a report from Reuters, the deal is expected to be valued at approximately $450 million. Whirlpool intended to sell its shares at Rs 1,230 each representing a 7.6 per cent discount compared to Monday's closing price. The transaction is anticipated to be completed by Wednesday, based on the report. ()

Goldman Sachs is offering advice to the American promoter regarding the sale of the stake. Whirlpool Corporation, through its subsidiary Whirlpool Mauritius held a 75 per cent ownership stake in the Indian consumer durables manufacturer by the end of the December quarter. ()

In January, the company declared its intention to sell up to 24 per cent of its ownership in the Indian division while still retaining majority control. According to the report, Whirlpool has experienced declining profits for five consecutive quarters up to the end of September, attributed to increased competition  and pricing pressures.

According to the Reuters report, the divestment will include a minimum of 1.9 crore shares in the Indian division, valued at $282 million at the suggested price. There is a possibility of offering an extra 1.14 crore shares, potentially worth an additional $169 million.

The choice to sell shares coincided with India's benchmark stock indices reaching record highs fueled by robust economic growth and sustained political stability leading up to upcoming elections.

In the past six months, Whirlpool of India's shares have underperformed compared to the market, declining by 16 per cent while the BSE Sensex rose by 11.6 per cent during the same period. Year-to-date, the stock has decreased by 2.5 per cent.