Moody's Corp. unveiled plans to seek a majority stake in ICRA
Ltd., a provider of credit ratings and research in India, through a
tender offer.
Moody's, a ratings and analytics company, offered to acquire up
to 2.65 million shares of ICRA at a price of 2,000 Indian rupees
(about $32.19) a share, a 26% premium over ICRA's closing price on
the National Stock Exchange of India Ltd. on Thursday. The offer
represents a 22% premium to ICRA's record-high closing price at the
end of last year, Moody's said.
Full acceptance of the offer would boost Moody's ownership stake
in ICRA to about 55%, from 28.5% currently, Moody's said in a
statement. The offer is conditional upon Moody's acquiring at least
2.15 million shares, which would increase its ownership stake to
slightly more than 50%.
Moody's, which relies on its debt-rating operation for the vast
majority of its income, said it would fund the offer from
international cash on hand and the tender period is expected to
begin in April, subject to review of the deal by Indian regulatory
authorities.
"We look forward to expanding and deepening our collaboration
with ICRA as it provides research and ratings for the growing
domestic debt market in India as well as other emerging markets in
the region," said Moody's President and Chief Executive Raymond
McDaniel.
Earlier this month, Moody's reported its fourth-quarter profit
jumped as revenue grew in its structured finance segment. The
company's shares have risen about 6% in the past three months.
Write to Erin McCarthy at erin.mccarthy@wsj.com
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