Source: Moody's
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.