ZURICH, July 27 (Reuters) - Swiss engineering group ABB Ltd successfully raised its stake in its Indian subsidiary to 75 percent, boosting its position in the fast-growing Indian market.
Shareholders of ABB India tendered about 23 percent of the outstanding shares, ABB said in a statement on Tuesday, adding that the offer had been oversubscribed by about 1.5 percent.
In May, ABB said it wanted to raise its stake in ABB India Ltd to 75 percent from 52 percent. The offer constituted a premium of 34 percent to the closing price of the shares on the day before the deal was announced and valued the transaction at up to $965 million.
Analysts have been watching closely to see how ABB, whose products include circuit breakers and industrial robots, would deploy a cash pile that totalled $5.9 billion at the end of the last quarter.
The India deal is ABB's second in a month following its acquisition of U.S. software group Ventyx, after being outbid for British power supply systems maker Chloride Group Plc in late June following a prolonged battle with Emerson Electric Co. Keywords: ABB/ (Zurich newsroom +41 58 306 7336, fax 41 44 251 0476, zurich.newsroom@news.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Shareholders of ABB India tendered about 23 percent of the outstanding shares, ABB said in a statement on Tuesday, adding that the offer had been oversubscribed by about 1.5 percent.
In May, ABB said it wanted to raise its stake in ABB India Ltd to 75 percent from 52 percent. The offer constituted a premium of 34 percent to the closing price of the shares on the day before the deal was announced and valued the transaction at up to $965 million.
Analysts have been watching closely to see how ABB, whose products include circuit breakers and industrial robots, would deploy a cash pile that totalled $5.9 billion at the end of the last quarter.
The India deal is ABB's second in a month following its acquisition of U.S. software group Ventyx, after being outbid for British power supply systems maker Chloride Group Plc in late June following a prolonged battle with Emerson Electric Co. Keywords: ABB/ (Zurich newsroom +41 58 306 7336, fax 41 44 251 0476, zurich.newsroom@news.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.