Whirlpool set to sell 24% stake in Indian unit for up to US$451 million

APPLIANCE maker Whirlpool is selling a 24 per cent stake in its Indian unit this week for up to US$451 million via block deals, according to a term sheet seen by Reuters.

Whirlpool plans to sell the stake at a price of 1,230 rupees (S$19.94) per share, a 7.6 per cent discount to Monday’s (Feb 19) closing price. It aims to complete the deal by Wednesday.

Goldman Sachs is advising Whirlpool on the deal, the term sheet showed. Goldman and Whirlpool did not immediately respond to requests for comment.

Whirlpool said in a US filing in November that it planned to sell the stake in a bid to reduce debt.

The company’s profit fell for a fifth straight quarter in the three months to end-September as it faced rising competition and price pressures.

It will sell a minimum of 19 million shares in the Indian unit, worth US$282 million at the proposed sale price, with the option to offer an extra 11.4 million, which would be worth an additional US$169 million.

India’s benchmark stock indices are near record highs, lifted by an economic growth rate higher than many other large countries and the expectation of political continuity in an election later this year. REUTERS