Moody’s secures majority equity ownership stake in ICRA
Wednesday, 25 June 2014 00:00
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Moody’s Corporation 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 5.17 billion Indian rupees. Moody’s will fund the offer from international cash on hand. The transaction is expected to close on or by 30 June, 2014.
Moody’s offer price of 2,400 Indian rupees 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 1,637 Indian rupees per share on 31 December, 2013.
Moody’s first purchased an ownership stake in ICRA in 1998.
Moody’s is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody’s Corporation is the parent company of Moody’s Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody’s Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The Corporation, which reported revenue of $ 3 billion in 2013, employs approximately 8,500 people worldwide and maintains a presence in 31 countries.
