Dec 24 (Reuters) – Canada Pension Plan Investment Board and U.S. private equity firm Stonepeak will launch an offer to purchase a stake of up to 26% in Castrol’s Indian unit, they said on Wednesday, following their deal to acquire the firm from parent BP.
Stonepeak and CPPIB will offer Castrol India shareholders 194.04 rupees per share, they said in an exchange filing, representing a 2.5% premium to Wednesday’s closing price.
Under India’s takeover regulations, acquiring 25% or more in a listed company triggers a mandatory open offer to purchase at least an additional 26% from public shareholders, potentially resulting in a majority stake of 51%.
BP has agreed to sell a 65% stake in Castrol to Stonepeak for about $6 billion, with CPPIB also investing up to $1.05 billion for an indirect stake.
The deal gives Stonepeak control of Castrol’s entire 51% stake in Castrol India.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman)
